Hydropower Knr In June 2016
The new Development Bank (BRICS) approved a funding scheme for the construction of two Beloporacic GEC projects in the territory of Carelia with the participation of two international development banks, including the Eurasian Development Bank (EBB) and the International Investment Bank (IB).
At the Petersburg International Economic Forum, held from 16 to 18 June 2016 in St. Petersburg, President of the New Development Bank, Vaman Kamatha, it was announced that a decision on the projects would be taken in July 2016.
The BRICS Bank provides the amount required for the project in foreign currency. Therefore, the BRICS partnership is being discussed with two major international financial institutions, such as the Eurasian Development Bank and the International Investment Bank, to obtain funds for the project in Russian rubles.
As North Gidro reports, negotiations with EBA and MIS have been under way since the beginning of 2016, and agreement has been reached on the basic terms of funding for projects. At present, EBU and MIS are conducting technical expertise on the projects for the construction of the Beloporacic GEC, and projects for the credit committees of the banks are scheduled to be launched in August 2016. The total investment in the Kareliyah hydropower projects will be around 10 billion.
It is important to note that the project will use equipment for predominantly Russian suppliers and that construction is planned for Russian contractors despite the existence of a Chinese investor.