Upper chamber of Russian parliament ratifies protocols on 2-year extension of Russian credit to build Belarus’ nuke plant, cut interest rate to 3.3%

<p> MINSK, Mar 17 - PrimePress. The Federation Council (the upper chamber of Russia’s parliament) ratified on March 17, 2021 the protocols to amend the Belarusian-Russian intergovernmental agreement to extend by two years the Russian loan for the construction of the Belarusian nuclear power plant (BelNPP, Astravyets, Grodno Oblast) and to replace the current mixed interest rate on the loan with a fixed interest rate of 3.3% per annum. </p> <p>   </p> <p> Previously, the lower chamber (the State Duma of Russia) approved the protocols on Mar 10, 2021. </p> <p>   </p> <p> Belarus completed the ratification of these protocols in December 2020: the relevant laws were adopted by the lower chamber of Belarus’ parliament and approved by the upper chamber of the National Assembly of Belarus and signed by President Alexander Lukashenko. </p> <p>   </p> <p> As previously reported, two protocols on amendments to the Belarusian-Russian intergovernmental agreements were signed in Moscow on 14 July 2020: the 15 March 2011 agreement on cooperation in BelNPP construction and the 25 November 2011 agreement on granting the government of Belarus a state export credit for BelNPP construction (a $10bn loan covering 90% of the cost of the BelNPP construction contract). </p> <p>   </p> <p> The first protocol provides for a 12-month shift in the deadlines for commissioning the BelNPP: the first unit will be launched in 2021, second unit - in 2022. </p> <p>   </p> <p> According to the second protocol, the term of availability of the Russian loan for BelNPP construction was extended by two years - until the end of 2022, and the start date of repayment of the principal debt was postponed till April 1, 2023 (previously April 1, 2021). The repayment period of the loan is 15 years. </p> <p>   </p> <p> Previously it was planned that the repayment of the loan would start 6 months after the commissioning of the nuclear power plant, but not later than 1 April 2021. The repayment was scheduled in thirty equal instalments every six months. 50% of the amount was to bear interest at 5.23% per annum and the remaining 50% at the LIBOR rate for six-month dollar deposits, increased by a margin of 1.83% per annum. </p> <p>   </p> <p> According Atomstroyexport (Russia’s general contractor for the Belarusian nuclear energy project), the actually cost of the BelNPP project will not exceed $6 billion. According to the Ministry of Finance, as of 1 March 2021 Belarus had drawn down $4.7 billion in credit funds. </p> <p>   </p> <p> Belarus’ first nuclear power plant in Ostrovets (a town in the Grodno Oblast also referred to as Astravyets) will have two units with a combined capacity of up to 2,400 megawatts. The AES-2006 Russian standard design of (generation 3+) was chosen for its construction. Rosatom’s division Atomstroyexport acts as the general contractor for the NPP construction. The Belarusian Nuclear Power Plant RUE is the project customer and the future operator of the NPP. The ceremony of the official launch of the NPP took place in early November 2020. According to presidential decree No.447 of November 30, 2020, the first power unit of the NPP will be put into commercial operation in 2021, the second power unit – in the first half of 2022. End </p>

2021-03-18

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