OREANDA-NEWS. October 04, 2010. President Alexander Lukashenko issued Decree No 501 ‘On the Approval of International Treaties’.

The Decree approved the Loan Agreement (solid waste disposal project) and the Grant Agreement of the Global Ecological Fund (solid waste disposal project) concluded between the Republic of Belarus and the International Bank for Reconstruction and Development.

Under the Loan Agreement, Belarus will receive USD42.506 million for building a waste treatment facility in Grodno and improving the local waste treatment practices in Grodno at large.

The terms and conditions of this loan are considered preferential even in comparison with foreign state loans (credits) and include an annual interest rate of 1 per cent, loan repayment period of 15 years, a 5-year preferential period (moratorium on the repayment of the principal).

The funds for the repayment of the loan and the interest will come from the national budget and the budget of Grodno Region, with a 50/50 ratio.

This loan will not exceed the upper limit of Belarus’ state debt as indicated in the Law of the Republic of Belarus ‘On the Republican Budget for the Year 2010’.

In accordance with the Grant Agreement, the Republic of Belarus will receive an equivalent of USD 5.5 million for the construction of the afore-mentioned waste treatment facility in Grodno.

This project will be financed jointly by Belarus (USD 27.13 million), the International Bank for Reconstruction and Development (USD 42.506 million) and the Global Ecological Fund (USD 5.5 million), or USD 75.136 million as a whole.

The loan agreement and the grant agreement were signed in Minsk on 5 July 2010 and they contain no provisions that would run counter to the Constitution of the Republic of Belarus and other national legislative acts and are regarded as international treaties.

These loans will help set up a modern facility in Grodno, reduce the harmful impact of organic waste on the environment and human health thanks to safe storage and disposal of more than 1.8 million tonnes of waste.