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European Bank and Estonia sign emergency energy investment loan agreement
Estonia's critical energy supply difficulties will be alleviated by a loan in the amount of DM 73.5 million (ECU 39.1 million equivalent) signed today by Mr Madis Üürike, Estonia's Minister of Finance and Governor of the European Bank for Reconstruction and Development, and Mario Sarcinelli, the Bank's Vice President in charge of Development Banking.
"By helping the country meet its critical energy needs during coming winters, this project will provide important economic assistance to Estonia, with broad humanitarian fall-outs," Mr Sarcinelli said. "Measures to improve supply and make energy use more efficient are now urgently needed to meet the basic energy needs of the population and to avoid exacerbating the contraction in Estonia's economy."
Specifically, the project, which was approved by the Board of Directors of the European Bank earlier this week, will provide stations for metering gas imports; assist with the completion of import and storage facilities for fuel oil at a new terminal in Tallinn; provide spare parts for power stations and district heating systems and equipment to improve supply efficiency; and support priority conservation investments and pilot conversion of boiler houses to indigenous fuels.
The project also starts the process of setting the operations of Estonia's energy utilities on a normal commercial basis, by liberalising energy prices in most sectors and improving financial management.
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