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Two projects (ECU 45 million) signed for Belarus
Mr Nikolai Kostikov, Deputy Prime Minister of the Republic of Belarus and Jacques de Larosière, President of the European Bank for Reconstruction and Development (EBRD), have signed two loan agreements for a total value of ECU 45.85 million. The larger of the two loans, for ECU 40.1 million equivalent, is to be implemented by the Ministry of Energy to help modernise the Orsha power plant, situated in the north-east part of the country. The Minsk Wholesale Market Company will receive ECU 5.75 million.
At the signing ceremony Jacques de Larosière commented, "Although they represent very different sectors, these two very important projects reflect the range of areas in which the EBRD can have a significant impact. Both introduce new techniques and approaches and create a more commercial environment in which to do business."
The proceeds of the first loan will be used to build a combined-cycle heat and power plant with a capacity of 62 MW, the first in Belarus. Its contribution would allow the country to decrease its dependence on increasingly expensive energy imports. The project will introduce modern, fuel efficient and environment-friendly technology, improve the reliability of domestic supply and make significant steps in restructuring the country's power industry along more commercial lines.
The second loan will partially finance the transformation of an existing vegetable distribution base into a modern fruit and vegetable wholesale market complex, with the aim of providing year-round supplies of fresh produce for the capital. The wholesale market would be a highly visible centre for fresh produce buyers and would lead to a more competitive environment for suppliers, encouraging enhanced quality as well as improving sanitary controls for fresh produce, sold at market-clearing prices. If successful, it will provide a further incentive for similar projects and serve as a useful model for the deregulation of other commodities in Belarus.
Note: A combined-cycle unit combines a gas and steam turbine to produce electricity and heat as a by-product. Such combinations are much more fuel efficient than those currently applied in Belarus by a factor of two.
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