OREANDA-NEWS. March 11, 2011. Eurasian Development Bank (EDB) has transferred the first USD27.9 m tranche for the construction of Polotsk hydro-power station (GES) in Belarus. A loan agreement for financing of the project was signed between EDB and the Republican Unitary Enterprise "Vitebskenergo" (RUE "Vitebskenergo") in November last year, reported the press-centre of KASE.

The project envisages construction of a power station with a capacity of 21.75 MW on the river Zapadnaya Dvina. The annual output will make up 112 m kW/h. The total cost of the project equals to USD142.7 m. EDB's financing makes up USD99.8 m. The loan agreement's term - 10 years. The loan is secured by the Republic of Belarus.

The project is carried out by RUE "Vitebskenergo" which is the largest electricity supplier in the country with a share of 40% in the total output. The general contractor is VO Technopromexport (Russia), a leading company of the industry.

EDB's loan will be directed to financing of the complex construction of Polotsk GES, including designing, construction, equipment supply, supply of spare parts, assembly, start-up works, testing, commissioning, training of personnel.
                                                                         
The project's main goal is increasing the energy safety of Belarus at the account of exploitation of local renewable resources. The project's implementation will help to reduce electricity production costs, save organic fuels of up to 35.1 thousand tons a year.