OREANDA-NEWS. On 15 June 2009 was announced, that the Board of Executive Directors of the World Bank approved a U.S. USD 125 million loan to the Republic of Belarus to support a USD 193.1 million Energy Efficiency Project aimed at improving energy efficiency in heat and power generation in selected towns in Belarus.

“This is the largest loan we have made to Belarus to date, “says Martin Raiser, Country Director for Ukraine, Belarus and Moldova. “We support the Belarusian authorities in their efforts to increase energy security, reduce carbon emissions, and lay the foundation for competitiveness and growth through improved energy efficiency.”

The project’s main objective is the conversion of six existing heat-only-boiler plants to combined heat and power plants in different locations across Belarus. As a result, about 90 MW of an additional electric capacity based on modern combined cycle gas turbines and gas engines will be installed. Furthermore, the efficiency of heat and power generation at the project sites is expected to increase by about 30 percent. It is estimated that about 90 million cubic meters of natural gas will be saved annually, which would lead to the reduction of about 165,000 tonnes of carbon dioxide per year.

The project will be implemented by the Belinvestenergosberezhenie state enterprise reporting to the Energy Efficiency Department under the Committee of Standardization, the agency responsible for the National Energy Efficiency Program.

The World Bank loan has a maturity of 16 years including a 6 year grace period. Implementation of the World Bank funded project will begin in 2009 and will take five years.

Belarus joined the World Bank in 1992. Since then, commitments to the country total USD 443 million for eight operations. The World Bank supports Belarus in improving people’s lives by enhancing the competitiveness of the country economy to assure rising incomes and protecting the welfare of the weakest, and addressing global environment, and energy challenges.