The European Bank for Reconstruction and Development (EBRD) is to loan 115M Euro (US$138M) for the modernisation of a hydroelectric plant in Azerbaijan.
Etibar Pirverdiyev, the president of Azerenergy, said the contract will be signed in early 2006. It will include a 20 year term loan with a three-year grace period at LIBOR rate plus 0.5% per year.
The project will increase Azerbaijan plant’s power output from 2100MW to 2500MW, enabling the country to reduce annual fuel consumption by 400,000 metric tons.