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European Bank approves energy loan for Bulgaria
The Board of Directors of the European Bank for Reconstruction and Development yesterday approved an ECU 40 million loan to the Republic of Bulgaria, in response to an energy supply emergency.
The loan, Bulgaria's first from the European Bank, will help the country secure its energy capacity by financing completion of Unit Number 8 of the Maritza East II Power Plant. An additional ECU 45 million will come from the European Investment Bank, with the remaining ECU 29 million of the project's total ECU 114 million coming from Nazionalna Electriceska Compania.
In addition to increasing energy supplies, the loan proceeds will also be used to help bring the country into compliance with international environmental standards by funding its first Flue Gas Desulphurisation Unit, bringing state-of-the-art clean coal technology to Bulgaria.
"This project is particularly important at this moment," said European Bank President Jacques Attali. "The international community must do its best to assist Bulgaria, which is facing an acute power shortage leading to frequent blackouts in the capital city and the industrial sector. Two of the six units of the Kozloduy nuclear power plant, the country's only nuclear plant and a major domestic source of energy for Bulgaria, have recently been shut down for safety reasons. New sources of energy must be financed in order to compensate for the energy shortage which might result from the shut down of dangerous nuclear units, when it is not possible to bring them up to international standards."
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