The EFSD Council approves a US $40 million investment credit to finance Phase 1 of the Nurek HPP Rehabilitation Project
Moscow, 6 February 2019. The Council of the Eurasian Fund for Stabilization and Development (EFSD) approved a US $40 million investment credit to finance Phase 1 of the Nurek HPP Rehabilitation Project.
The project envisions the purchase, supply, installation and commissioning of six single-phase autotransformers to replace the obsolete equipment installed at the plant’s switchyard over 40 years ago. The credit will be extended for twenty years, with an eight-year grace period for principal repayments. The project will improve safety and reliability of the plant, ensure uninterrupted electricity supplies in the country, and reduce costs of operations and repair of autotransformers.
The project is part of a bigger project to reconstruct the Nurek HPP, which consists of two phases, with financing totalling up to US $700 million. The first phase of reconstruction is currently underway. It is financed, in addition to the EFSD, by the International Development Association (the World Bank Group) and the Asian Infrastructure Investment Bank.
Phase 1 of the Nurek HPP Rehabilitation Project is the EFSD’s first investment project in Tajikistan. The EFSD and the Government of Tajikistan are expected to sign a loan agreement in the near future, and the project will be launched this year.
The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB's charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
The Eurasian Fund for Stabilisation and Development (EFSD) amounting to US$8.513 billion was formed on 9 June 2009 by the governments of the same six countries. The objectives of the EFSD are to assist its member countries in overcoming the consequences of the global financial crisis, ensure their economic and financial stability, and foster integration in the region. The EFSD member countries signed the Fund Management Agreement with Eurasian Development Bank giving it the role of the EFSD Resources Manager.
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