World Bank Funds for Oyu Tolgoi

I just learned from this article that the World Bank is considering funding the Oyu Tolgoi mining project. Thanks to this tweet by Tegshjargal for the link.

The article is critical of the environmental impact and opposes World Bank funding.

A Google search with “World Bank Oyu Tolgoi” points to this MIGA page, which says that indeed, there  is a decision up in November on a 1000 million dollar guarantee for the project.

Adding “loan” to the above, this page from the European Bank for Reconstruction and Development comes up,  which discusses the environmental impact of the project in detail, but contains no section on power supply. It also comes up with this International Finance Corporation (World Bank) page, which discusses the plans of providing finance for the project and the environmental impact assessment.

If it is true that Oyu Tolgoi wants to secure financing from EBRD and the World Bank, they might want to think again about their plans to build a dirty coal plant at the site. They could kick off large-scale renewable generation in the Gobi right at their project site instead and get very cheap World Bank funds for that purpose.

I just had a look at the “Environmental Social Impact Assessment” published at the Oyu Tolgoi homepage. That document says that the issue of power is not addressed this time around in its Introduction.

I understand that there is a chance for public comment on the document and I might want to offer some comments about the power strategy of the project later. For starters, I have written an open letter to the Oyu Tolgoi project asking why they don’t build any solar capacity.

 

Published by kflenz

Professor at Aoyama Gakuin University, Tokyo. Author of Lenz Blog (since 2003, lenzblog.com).

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