EDB provides RUR 9 billion to the Siberian Generating Company to construct a new unit at the Abakan CHP plant

Moscow, 9 July 2012. Eurasian Development Bank (EDB) and the Siberian Generating Company Group (SGC) signed today a loan agreement to finance turnkey construction of a new unit at the Abakan combined heat and power (CHP) plant. The document was signed by Gennady Zhuzhlev, Deputy Chairman of the EDB Management Board, and Sergey Mironosetskiy, General Director of SGC.

In accordance with the agreement, EDB will provide the Yenisei Territorial Generating Company (TGC—13) (a member of the SGC Group) with a seven-year non-revolving loan facility of RUR 9 billion. The total cost of the new unit is estimated at RUR 10.5 billion.

The fourth turbine generator and a new steam boiler will be installed at the Abakan CHP plant. Water and fuel supply systems and the power generation system will be reconstructed. The new 120 MW unit is scheduled to be commissioned in October 2013.

The Abakan CHP plant is one of the largest electric power facilities in the Republic of Khakassia and the main supplier of heat for its capital, Abakan, accounting for about 80% of heat supplies to the consumers of the town’s housing and utilities sector.

The new unit at the Abakan CHP plant is needed to make the region’s electric power system more flexible and balanced, including in case of emergencies. The investment project will increase the plant’s generating capacity by one third, from 270 MW to 390 MW.

«The Abakan CHP plant project will give an impetus to the development of the region and open a new „window of opportunity“ for it,» Sergey Mironosetskiy said. «Our overall investment programme includes twelve projects, two of which have already been completed. The total value of the investment programme, including the commissioned facilities, exceeds RUR 80 billion. The sources of finance are our own funds and loans. Our cooperation with financial institutions such as Eurasian Development Bank helps us perform our obligations in full and in time.»

«This project is a priority for our Bank as it is being implemented in the energy sector and will have a positive effect on the advancement of the production, housing and utilities infrastructure of the Republic of Khakassia,» Gennady Zhuzhlev stated. «The increase in the capacity of the Abakan CHP plant will help meet the growing demand for electricity and heat and will foster economic growth and sustainable development in the region as a whole.»

Additional Information

The Siberian Generating Company Group is a leading producer and supplier of thermal and electric power in the Siberian Federal District. The group operates in Kemerovo Region, Altai and Krasnoyarsk Krais, the Republic of Khakassia, and the Republic of Tyva and accounts for approximately 20% of total generation by the Siberian Interconnected Power System. The main fuel used is coal and the main market is the wholesale market in electricity and power. The group includes Kuzbassenergo (TGC—12) and the Yenisei TGC(TGC—13). SGC is currently implementing a major investment programme worth over RUR 80 billion to construct new facilities under power supply agreements. It is one of Russia’s largest employers with over 19,000 people employed.

Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital exceeds US $1.5 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. Read more at https://www.eabr.org.