THE EUROPEAN BANK OF Reconstruction and Development (EBRD) has agreed to allocate a credit line totalling US$245M towards construction of a dam at St Petersburg.

Although construction of the dam is about 60% complete, another US$400M is reportedly needed for the remainder of the project. The state-guaranteed loan is due to be paid back over 18 years. It is charged interest at 1% above the London InterBank Offered Rate, a standard European inter-bank interest rate.

Construction of the St Petersburg project has been under way since the late 1980s. It was put on hold in 1991 to allow financial, technical and construction management issued to be resolved.