OREANDA-NEWS. The World Bank will extend a \\\$100-150mn loan to Belarus for the energy project, Pekka Salminen, WB Senior Energy Specialist, told a news briefing in Minsk on April 15.

According to him, a group of WB experts are in Belarus to discuss the new loan agreement. Another visit of the WB mission is scheduled for June 2008.

The loan negotiations can take place in December 2008. The loan can be endorsed by the WB Board of Directors at the beginning of 2009. Approximately in a year this money will start working, Mr Pekka Salminen said. Time is also needed for ratification and other necessary procedures.

The aim of project is to modernise boiler houses operated by Belenergo by means of installing energy-efficient cogeneration equipment, upgrade municipal boiler houses.

Mr Pekka Salminen expressed satisfaction with the level of cooperation between the Bank and Belarus. Several projects have been implemented; positive results have been achieved. “Having obtained these positive results, it is easier to move forward,” he said.

Mr Pekka Salminen believes that Belarus has reached recently significant successes in energy saving. “I think that many countries can learn your experience,” he added.

The Belarusian side attaches big importance to the cooperation with the World Bank and is interested in expanding it, said Andrei Minenkov, the chief of the department of research policy and foreign economic links of the Energy Efficiency Department of the State Standardization Committee of Belarus.

Speaking about the new project he said that the loan will be utilised to convert large heat-only-boilers (HOBs) operated by Belenergo to combined heat and power (CHP) plants in the towns of Borisov (around \\\$70mn), Mogilev (around \\\$20mn) and Lida (\\\$10-15mn). Around \\\$30mn to \\\$20mn will be injected in modernisation of municipal boiler houses.

The project is expected to result in saving more than 100,000 tonnes of fuel equipment every year, or \\\$12 million a year. Andrei Minenkov said that the modernisation of energy generating facilities by means of installing cogeneration equipment is highly effective. The payback term ranges, as a rule, from three to four years.