On June 30, the European Bank for Reconstruction and Development (EBRD) submitted to the Azeri government the copies of the credit and guarantee agreements on the reconstruction project of Heat Power Plant in Mingachevir. The credit agreement was forwarded to Azerenerji SC and the state guarantee agreement to the Ministry of Finance, Trend reports quoting the Cabinet of Ministers.
On June 27, the Board of Directors of EBRD confirmed the credit totaling $115m for the realization of the project. The cost of the construction from 1 to 8 blocks except the fifth block is estimated at $135 mln. the credit will be presented in accordance with the standard terms of EBRD: for 15 years, with 3-year payment delay and interest rate - libor+1%. However, unused part of the credit will be calculated with libor+0,5%. It is linked with acceleration of the process of use of credit resources.
In any case, Azereneji will try to accelerate the commencement of the construction works in 300 MV of heating plant which works with mazut and natural gas. The credit received from EBRD will be directed to the rehabilitation of turbine supply and realization of measures for upgrade of environment.
The plant has been functioning for more than 20 years and demands modernization works because the plant is of great importance for the country as a supplier of main part of electric power. The project aims to modernize and raise the efficiency of the plant.