EBRD talks to Azeri government on AzHPP rehabilitation

Business Materials 1 June 2006 14:30 (UTC +04:00)

Today Azeri government started official talks to EBRD on credit agreement regarding rehabilitation of AzHPP in Mingachevir. Governmntal officials told Trend the EBRD group is headed by senior banker Loran Chabouriet.

The talks are held during two days at participation of representatives of Azenerji AO, Ministries of Finance, Economic Development, Justice. The project will be approved at Council of Directors of EBRD on June 27.

Azenerji is now trying to accelerate commencement of construction activities at 300mV dual-fuel AzHPP (300km west of Baku). Construction operations are starting by the end of this year. AzHPP, constructed in 80s, is the largest power plant in Azerbaijan. It operates 8 power blocks, 300 MW each, however all equipment is outdated and rating is consequently decreased. The project aims at raising the plant rating to design values.

The EBRD-credited rehabilitation project includes recovery of turbine equipment and improvement of the environment conditions. Cost of 7 blocks reconstruction is evaluated in

$135mln (tax not inclusive), from which $115mln issues EBRD. The credit is issued on EBRDs standard terms for 15 years with 3-year payment delay and at libor+1% rate.