OREANDA-NEWS  On 20 February was announced, that Belarus suggests that Latvia should participate in joint energy projects, said First Vice Premier of Belarus Vladimir Semashko as he met with Prime Minister of Latvia Ivars Godmanis and representatives of the business circles of the two countries on February 19. Several energy industry programmes are being implemented in Belarus: programmes aimed at developing large-scale power generation, expansion and utilisation of local fuels, energy effectiveness and energy saving. As far as large-scale power generation is concerned, “Belarus is building an atomic power plant. If there is willingness to participate in the project and buy electricity in the future, we are ready to discuss it,” said Vladimir Semashko.

Although energy industry projects are rather lengthy and capital-intensive, it is necessary to start thinking about the infrastructure and to build relations now.

Two energy units of the nuclear power plant will be sufficient for Belarus’ domestic demand, but Vladimir Semashko believes that in order to be able to export the generated electricity, Belarus should think about building another one or two energy units. “If there is a customer, it is possible to specify now who, at what price, and in what form will buy the electricity,” he said. By the end of the year Belarus has to make the final decision on the power plant’s configuration. Belarus and Latvia will not be able to resolve the issue. It should be discussed by three countries, believes the First Vice Premier.

Apart from that, Belarus is working on a package of documents meant to give preferential taxation to private investors in small-scale energy industry. Thanks to the measure the return of investments will not exceed seven years. Belarus is interested in cooperation with Latvia in advancing the energy industry based on local fuels. Vladimir Semashko assured a system of measures will be put together to protect investments.

Belarus is interested in getting a terminal of its own for loose goods, said First Vice Premier of Belarus Vladimir Semashko. According to him, taking into account the growing production and the stabilisation of fertiliser exports Belarus needs to have a terminal of its own for loose goods. “We are looking for partners for possible cooperation in this area,” he said. Vladimir Semashko noted, if “we intend to sign some commercial contracts, it will be necessary to sign an intergovernmental agreement in order to have guarantees”.

Among priority areas of Belarus-Latvia cooperation Vladimir Semashko named woodworking, light and pharmaceutical industries. He said the cooperation looks promising due to Latvia being part of the European Union and the establishment of the Customs Union by Belarus, Russia, and Kazakhstan as from 2010. Setting up enterprises for assembling agricultural machines in Latvia was also named as a priority. It will allow satisfying the demand of the Baltic states for agricultural machines and supplying the machines to the European Union.

The First Vice Premier reminded that Belarus is reforming many state enterprises through privatisation and corporization. A share holder has to meet three main criteria: the availability of sufficient funding for the future development of enterprises, availability of proprietary raw stock and sales outlets. Vladimir Semashko underscored Belarus is ready to welcome Latvian business in this area.

Latvia offers Belarus to take part in the construction of port terminals, Latvian Minister for Communications Ainars Slesers said during the meeting between First Deputy Prime Minister of Belarus Vladimir Semashko, Prime Minister of Latvia Ivars Godmanis and businessmen of the two countries.

According to Ainars Slesers, the negotiations with Transport and Communications Minister of Belarus Vladimir Sosnovsky were very successful. The two sides reached an agreement on further cooperation. Since Belarus has no ports, the issue focused on freight transshipment as well as long-term cooperation. “I have suggested setting up joint terminals where Belarus can act as a co-founder,” the Latvian Minister said. The two sides have agreed to meet as soon as possible to discuss the issues related to the freight transshipment and attraction of cargo from other CIS countries.

Besides, in the near future Latvia is going to consider the issues of the tariff policy, Ainars Slesers added. The Latvian Railways and the company engaged in the freight transshipment are not monopolists. The company located in Venspils has a license for cargo transportation. “The Latvian Railways is not the single forwarder. It is possible to cooperate with other traders,” the Minister for Communications of Latvia said.

A representative of the Latvian Railways stressed that the major problem of the railways in Latvia is their small carrying capacity – 34 million tonnes of cargo. The construction of additional tracks will raise theri capacity up to 45 million tonnes.