EBRD lends Lenenergo EUR 40 million

Lenenergo and the European Bank for Reconstruction and Development yesterday signed a credit agreement according to which the St. Petersburg electricity company will receive EUR 40 million. The loan, which is to be repaid in seven years, was announced by EBRD president Jean Lemierre. The money will be used to build new facilities at a local power and heating plant. 'This is part of a wider programme aimed at increasing energy efficiency and improving the environment,' Lemierre explained. Lenenergo general director Andrei Likhachev said that 'in the autumn we will be ready to use this money. The majority loan will bring tangible results before the end of the year.'

On May 15 Lenenergo's shareholders agreed to pay a total dividend of 946,718,000 roubles (approximately USD million), which affected plans to build the power and heating plant. At the shareholder meeting Likhachev said that 'it seems that the construction plans will have to be postponed, as the board of directors has recommended high dividends. Either we will find another way or another resource, or we will not be able to construct the plant this year.'

The plants existing facilities were built in 1929 and modernized in the 1960s. Reconstruction work, which should see two new generators being built, began in 1988.

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