Republic

Deputies plan to ratify loan agreement between Belarus and World Bank to implement Chernobyl project

A draft law “On ratifying the loan agreement (project to rehabilitate Chernobyl regions) between the Republic of Belarus and the International Bank for Reconstruction and Development” was considered today at an extended meeting of the permanent commission for international affairs and links with the CIS of the Chamber of Representatives of the National Assembly of Belarus. Deputies decided to propose to add the draft law to the agenda of the next plenary meeting of the session of the lower chamber of the Belarusian parliament. When speaking at the meeting chairman of the Chernobyl committee under the Council of Ministers of Belarus Vladimir Tsalko noted that the agreement on the World Bank loan to the Republic of Belarus to rehabilitate the Chernobyl-affected regions of Belarus was signed on April 19 this year during the international conference “Chernobyl: 20 years on. Strategy for restoration and sustainable development of the affected regions”. The rehabilitation project is the first stage of long-term Chernobyl cooperation between this republic and the World Bank. The sides will cooperate in two main fields – increasing the energy effectiveness and extending gas networks to the contaminated regions. Investment projects will be implemented in three oblasts of the republic – Brest, Gomel and Mogilev regions. According to Vladimir Tsalko, in line with the agreement the project will be implemented in 2006-2010. It aggregate cost makes USD 60,964 million including the USD 50 million loan. The contribution of Belarus will make USD 10,964 million or 18 per cent of the total cost of the project. Vladimir Tsalko has stressed that the loan is issued for 17 years with a five-year moratorium on the payment of the principal debt. The loan will be paid by installments twice a year. First disbursement is to be effected on September 15, 2101 while the last one - on March 15, 2023. The loan will be used to implement an energy efficiency project targeted at people living in the Chernobyl affected areas. A total of USD 39,4 million of the loan (78.8 per cent of its worth) and USD 8,1 million from the Belarusian budget will be spent to finance these purposes. Some USD 6,8 million (13.6 per cent) of the loan and USD 1,7 million to be assigned by Belarus will be utilized to extend gas supply networks. Gas supply facilities will be extended to 20 settlements in the affected territories. The remaining funds will be spent to finance the design works and loan service, Vladimir Tsalko said. The national coordinator of the project is the Chernobyl committee; gasification and energy supply works have been put in charge of the energy ministry and the energy efficiency committee at the Council of Ministers of the country. “The project would ensure energy-efficient and reliable supply of heat energy and hot water to the people living in the Chernobyl affected areas. At the same time the project would also contribute to meeting the energy saving targets envisaged in the relevant state program”, Vladimir Tsalko stressed.