Belarus to take out $323.8m Chinese loan for NPP infrastructure
11 July 2013
MINSK (BelTA) - In 2013-2018 Belarus has plans to raise a soft loan worth $323.8 million from the Export-Import Bank of China for 15 years for the implementation of the project “The construction of the NPP in the Republic of Belarus. Power plant output and connection with the power network.” The decision is laid down in Resolution No.598 of the Council of Ministers adopted on 9 July 2013, which was published on the national legal web portal on 11 July, BelTA has learnt.
The document was adopted in line with Decree No.252 as of 18 April 2006 “On the adoption of the Provision on external government borrowing and foreign loans raised under the guarantees of the Government of the Republic of Belarus” and in pursuance of the General Credit Agreement between the Government of the Republic of Belarus (loan debtor) and the Export-Import Bank of China (creditor) on the issuance of a soft buyer loan as of 7 November 2011.
The resolution reads that the negotiations will be based on the draft loan agreement on the allocation of the soft buyer loan for the investment project “The construction of the NPP in the Republic of Belarus. Power plant output and connection with the power network” between the Government of Belarus represented by the Finance Ministry and the Export-Import Bank of China.
Energy Minister of Belarus Vladimir Potupchik has been authorized to hold the negotiations on the draft loan agreement and sign it.
Following the procedure to choose the general contractor for the project “The construction of the NPP in the Republic of Belarus. Power plant output and connection with the power network” a contract was signed between Grodnoenergo, the customer, and the Chinese company NCPE in August 2012.
The contract stipulates a complex rebuilding of the 330KW high-voltage power lines, the construction and renovation of the 330KW electric power substations which are part of the NPP power system, including design works, construction, renovation, supplies and installation of equipment, works relating to adjustment and commissioning, tests, personnel training, commissioning of the facility and technical maintenance during the warranty period. The contract also reads that the design works will be carried out by the Belarusian design organizations in line with the Belarusian regulations. Half of the works to implement the project will be carried out by Belarusian organizations.
The Belarusian NPP will consist of two power units with the total capacity of 2,400MW (2x1,200MW) and will be built in Ostrovets District, Grodno Oblast. The NPP-2006 project has been chosen to construct the plant. The project fully complies with the IAEA recommendations. The general designer and contractor is the Russian company OAO NIAEP – ZAO Atomstroyexport (ASE). The plant is set to be commissioned in 2018.