What Is to Happen with St. Petersburg's Flood Protection to Be Decided in Fourth Quarter 2002

In the fourth quarter of 2002, the Board of Directors of the European Bank for Reconstruction and Development (EBRD) will make a decision concerning loaning EUR 225 million to the Ministry of Finance of Russia to be repaid after flood-protecting dam is built in St. Petersburg. According to EBRD's press service, the total value of the project amounts to EUR 440 million or USD 420 million.

According to the directives issued by the government of Russia and the administration of St. Petersburg, as concerned obtaining additional investments to complete the dam, the Morzashchita agency and the Dutch NEDECO concern jointly took some action to this effect. The London office of EBRD and the Royal Ministries of Transportation and Economic Connections of the Netherlands received and jointly discussed their report. Plans concerning the work were submitted to these parties on June 1, 2001.

In December 2001, EBRD had talks with Morzashchita and NEDECO concerning doing a feasibility study for the project in the first quarter of 2002. The said loan may be issued on guarantees of repayment on the part of the government of Russia and on condition that a report is put together concerning the environmental effects of the project. By this time, the dam is more than half-completed.