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€342 mln EBRD loan helps Bulgaria generate more electricity
Working with AES marks the country’s largest FDI
The EBRD is providing €342 million towards a €1.1 billion project to build the
new Maritza East I power plant in Bulgaria. It is the country’s first
large-scale greenfield and fully privately-owned power plant.
The Bank’s loan, being provided to AES-3C Maritza East 1 EOOD, a wholly-owned
subsidiary of AES, one of the world’s largest power producers, will enable the
company to build a 2 x 300 Mega Watt lignite-fired power plant in Galabovo,
270 kilometres outside Sofia, the capital city. The plant will help secure
Bulgaria’s and south-eastern Europe’s future energy needs, especially
following the decommissioning of the two further units of the Kozluduy nuclear
power plant in 2006.
The project marks the country’s largest foreign direct investment. As well as
ensuring a reliable power supply to consumers in Bulgaria and the region, the
project will have a significant social impact through job creation and a
positive economic impact for Bulgaria using an indigenous fuel. The Bank will
syndicate around €246 million of its loan to international banks, including
BNP Paribas, Calyon, ING and the Black Sea Trade and Development Bank,
Anthony Marsh, EBRD Director for Power and Energy, said this project reflects
the EBRD’s commitment to Bulgaria, and to helping secure a source of energy
for the country and the wider region. This latest loan builds on nearly €230
million the Bank has already committed to Bulgaria’s power sector.
The new plant will use state-of–the-art pollution control technology,
including flue gas desulphurisation, which will reduce sulphur dioxide levels,
the gas responsible for acid rain. The plant will meet European Union and
Bulgarian emission standards for particulates, especially sulphur dioxide and
nitrogen oxide, a major pollutant.
Established in 1981, and traded on the New York Stock Exchange, AES develops,
owns and operates electric generation plants around the world. The company
currently operates in 26 countries in 5 continents, with a capacity to serve
the energy needs of more than 100 million people worldwide. AES-3C Maritza
East 1 EOOD will sell the electricity it generates to NEK, the National Grid
in Bulgaria.
“Bulgaria is experiencing good economic growth, political stability and good
opportunities in the power sector as it prepares its accession to the European
Union,” said AES President and Chief Executive Officer Paul Hanrahan.
“Bulgaria needs electricity to fuel its economic expansion, and our new power
plant will go a long way toward meeting the country’s electricity needs as
well as maintaining its strong position as an exporter to its neighbouring
countries.”
The EBRD is the largest single investor in Bulgaria, having committed more
than €1.1 billion in 58 projects.
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