Updates to agreement on Russia’s loan for Belarus’ NPP under coordination – Ministry of Energy
<p> MINSK, May 11 - PrimePress. Belarus and Russia are considering updates to the terms of Russia’s loan for the construction of the Belarusian nuclear power plant (Astravyets District, Grodno Oblast), Deputy Energy Minister of Belarus Mikhail Mikhadyuk said during the online briefing held on May 11. </p> <p> </p> <p> “As Russia rescheduled the commissioning the first and second power units, the terms of the loan agreement regarding the utilization of the funds, repayment of the loan, and the interest rate are being reconsidered. Russia understands Belarus’ requests, but the documents have not been signed yet. They are going through the final stage of coordination and domestic procedures on both sides,” said Mikhadyuk. </p> <p> </p> <p> He said the financing of the construction of the NPP is carried out as planned. </p> <p> </p> <p> As reported, Russia gave a government loan to Belarus to cover 90% of the construction cost in the amount of $10 billion. The credit line is open until 2035. Under the current agreement, payments on the loan are to begin six months after the NPP is commissioned, but no later than April 1, 2021. Refunds will be provided in 30 equal installments every six months. 50% of the amount accrues interest at a rate of 5.23% per annum. The remaining 50% accrues interest at the LIBOR rate for six-month deposits in US dollars plus a 1.83 margin. </p> <p> </p> <p> As of April 1, 2020, $4.33 billion of loan funds had been used. According to Russia’s Rosatom, the forecasted cost of the NPP construction project will not exceed $6 billion. Media reported earlier that Russia had prepared and preliminary coordinated with Belarus amendments to the loan agreement, which extend the period of loan by two years until the end of 2022, replace the current mixed interest rate on the loan with a fixed one in the amount of 3.3% per annum, and postpones the beginning of the repayment of the loan principal from April 1, 2021 to April 1, 2023. According to Russia’s estimates, the overall financial effect of the restructuring of Belarus’ debt will be comparable with the lump-sum forgiveness of Belarus’ liabilities in the amount of around $600 million. </p> <p> </p> <p> Belarus’ first nuclear power plant in Ostrovets (a town in the Grodno Region also referred to as Astravyets) will have two units with a combined capacity of up to 2,400 megawatts, which are slated to be launched in 2019 and 2020, respectively. The Belarusian nuclear station’s design stems from the AES-2006 design developed by the St Petersburg-based institute Atomenergoproject, which is also the general contractor of the Belarusian project. End </p>
2020-05-12
Primepress
Updates to agreement on Russia’s loan for Belarus’ NPP under coordination – Ministry of Energy
MINSK, May 11 - PrimePress. Belarus and Russia are considering updates to the terms of Russia’s loan for the construction of the Belarusian nuclear power plant (Astravyets District, Grodno Oblast), Deputy Energy Minister of Belarus Mikhail Mikhadyuk said during the online briefing held on May 11.
“As Russia rescheduled the commissioning the first and second power units, the terms of the loan agreement regarding the utilization of the funds, repayment of the loan, and the interest rate are being reconsidered. Russia understands Belarus’ requests, but the documents have not been signed yet. They are going through the final stage of coordination and domestic procedures on both sides,” said Mikhadyuk.
He said the financing of the construction of the NPP is carried out as planned.
As reported, Russia gave a government loan to Belarus to cover 90% of the construction cost in the amount of $10 billion. The credit line is open until 2035. Under the current agreement, payments on the loan are to begin six months after the NPP is commissioned, but no later than April 1, 2021. Refunds will be provided in 30 equal installments every six months. 50% of the amount accrues interest at a rate of 5.23% per annum. The remaining 50% accrues interest at the LIBOR rate for six-month deposits in US dollars plus a 1.83 margin.
As of April 1, 2020, $4.33 billion of loan funds had been used. According to Russia’s Rosatom, the forecasted cost of the NPP construction project will not exceed $6 billion. Media reported earlier that Russia had prepared and preliminary coordinated with Belarus amendments to the loan agreement, which extend the period of loan by two years until the end of 2022, replace the current mixed interest rate on the loan with a fixed one in the amount of 3.3% per annum, and postpones the beginning of the repayment of the loan principal from April 1, 2021 to April 1, 2023. According to Russia’s estimates, the overall financial effect of the restructuring of Belarus’ debt will be comparable with the lump-sum forgiveness of Belarus’ liabilities in the amount of around $600 million.
Belarus’ first nuclear power plant in Ostrovets (a town in the Grodno Region also referred to as Astravyets) will have two units with a combined capacity of up to 2,400 megawatts, which are slated to be launched in 2019 and 2020, respectively. The Belarusian nuclear station’s design stems from the AES-2006 design developed by the St Petersburg-based institute Atomenergoproject, which is also the general contractor of the Belarusian project. End