OREANDA-NEWS. July 17, 2012. The Eurasian Development Bank (EDB) and Siberian Generating Company Group (SGC) signed a credit agreement today on financing of the construction project of the new unit of Abakan CHP. The turn-key project will be financed by the Bank. The document was signed by Deputy Chairman of the Board of EDB Gennady Zhuzhlev and General Director of SGC Sergey Mironosetsky.

In accordance with the document, the EDB will open a nonrevolving line of credit to JSC “Yenisei TGC (TGC-13)” (member of the SGC Group). The sum of RUR 9 bln will be loaned for a period of 7 years. The total price of the new power unit will be around RUR 10.5 bln.

The fourth generating unit and a new steam boiler will be built, as well as water supply, fuel delivery and energy distribution systems will be repaired at Abakan CHP. The new unit with the capacity of 120 MW is expected to be completed by October 2013.

The Abakan CHP is one of the largest enterprises in the energy sector of the Republic of Khakassia and one of the major suppliers of thermal energy to the capital city – Abakan. The plant provides heat to most residential buildings in the city (around 80% of all households).

The new unit of the Abakan CHP will help create a more flexible and balanced energy distribution system in the region, and will help improve mitigation efforts in case of emergencies. The investment project will allow to improve the installed electric capacity of the station from 270 MW to 390 MW.

“The project of the Abakan CHP will help stimulate the development of the region and open a new window of opportunities,” Sergey Mironosetsky said. “Our company investment portfolio includes 12 projects, and two of them have already been implemented. The total volume of the investment program, including the completed projects, exceeds RUR 80 bln. These projects are financed by the Company’s own monies and through credit programs. Cooperating with financial institutions, such as the Eurasian Development Bank, helps us complete all our projects fully and on time.”

“This project is a top priority project for our bank in the energy sector, it will help improve manufacturing and utilities infrastructure in the Republic of Khakassia,” Gennady Zhuzhlev commented. “Increasing the output capacity of the Abakan CHP will help meet the increasing demand for electricity and thermal energy, and will facilitate economic growth and sustainable development of the region.”