EDB Commenced Financing Construction of Polotsk Hydropower Plant in Belarus

Almaty, 3 March 2011. The Eurasian Development Bank (EDB) disbursed its first tranche of $27.9 million for the construction of Polotsk Hydropower Plant in Belarus. A loan agreement to that effect was signed by the Bank and Vitebskenergo in November last year.

Under this project, a hydropower plant with an installed capacity of 21.75 MW will be built on the West Dvina River. The plant will generate 112 million kW/h of electricity annually. The total project cost is $142.7 million, including the EDB’s commitment of $99.8 million. The loan agreement is made for ten years, with the Belarusian Government acting as guarantor.

The project is being implemented by Vitebskenergo, a major supplier of electricity in Belarus. The company’s share accounts for up to 40% of the domestic power market. The general building contractor is Tekhnopromeksport of Russia, a world leader in the construction of power facilities.

The EDB’s funds will go towards the construction of the hydroengineering facility of Polotsk Plant including design, equipment, spare parts, assembly, adjustment, testing, commissioning and personnel training.

The main objective of the project is to enhance the energy security of Belarus by inclusion of local renewable sources in the fuel and energy balance. This will allow the cost of electricity to be reduced and about 35,100 tonnes of organic fuel to be saved annually.