China to finance hydropower plant construction in Vitebsk

MINSK, 19 September (BelTA) – The China Development Bank is expected to grant a $189-million loan to finance the construction of the Vitebsk hydropower plant on the Western Dvina River. The relevant loan agreement was concluded between Vitebskenergo and the Chinese bank, BelTA learnt from the Energy Ministry of Belarus. The Belarusian government provides guarantees to the Chinese bank of repaying the loan, interests as well as other payments for the use of the loan. Belarus’ BPS-Bank has been chosen to be an agent bank. The decision is contained in Council of Ministers’ Resolution No. 1242 of 17 September 2011. The Vitebsk 40MW hydropower plant is planned to be built on the Western Dvina River by 2015. This will replace about 42,000 tonnes of fuel equivalent per year. A contract with China National Electric Equipment Corporation (CNEEC) was signed in December 2010. According to the document, the Chinese side shall be in charge of design, construction, supply of equipment and its installation, adjustment and commissioning. The corporation shall also runs the tests, put the plant into operation, and maintain during the warranty and training of personnel period. Vitebskenergo is also busy with the implementation of another investment project at the Western Dvina - the construction of the Polotsk hydropower plant with the total capacity of 21.6MW. The plant is set to be built by 2015. Annual production of electricity will make up 112 million kWh. The hydropower plant will replace 28,000 tonnes of fuel equivalent per pear. The construction of the hydropower plant in Polotsk is envisaged by Belarus’ state innovation development program. The construction works will be financed by the Eurasian Development Bank in the form of a loan to Vitebskenergo under the guarantees of the Belarusian government. The contract on the turn-key construction of the Polotsk hydropower plant was signed with Russia’s Technopromexport. Belarus’ highest hydro energy potential is in the river basins of the Neman, Western Dvina and Dnieper. Belarus plans to construct two hydropower plants at the Neman River with the total capacity of 37MW, four at the Western Dvina (112MW) and four more at the Dnieper (20.3MW). As soon as they are constructed, the total capacity of the Belenergo hydropower plants will make up nearly 180MW. By 2016 Belenergo plans to commission four large hydropower plants. The 17MW Grodno hydropower plant will start operating this year. The hydropower plant in Polotsk (22MW) will come on stream in 2014, in Vitebsk (40MW) and Nemnovo (20MW) in 2015. The annual power production is forecast at 0.4 billion kWh, an equivalent to about 128,000 tonnes of fuel equivalent per year.

БЕЛТА