German banks to provide €40m loan for construction of two power substations in Minsk

- The construction of two 110/10 kV power substations Kamennaya Gorka and Brestskaya in Minsk is estimated to exceed €40 million, BelTA learned from Alexander Sivak, Acting General Director - Chief Engineer of Belenergo Concern.

The construction of the first substation will require €20.250 million; the second substation will cost €20.860 million. These investment projects will be funded by a consortium of German banks AKA Ausfuhrkredit-Gesellschaft mbH (borrower is Belarusbank, recipient is Minskenergo) and through a letter of credit from Belarusbank.

“The project is socially-oriented. These are infrastructure facilities designed to ensure reliable electricity supply to the new residential districts Kamennaya Gorka, Krasny Bor and Brilevichi,” said Alexander Sivak.

Alexander Sivak informed that the project will be implemented within 13 months after the loan agreement enters into force. This document has yet to be signed.

As previously reported, the government of Belarus has provided the guarantees on the €37.826m foreign loan for the construction of two power substations. In accordance with Resolution No.707 of the Council of Ministers dated 12 August 2013, AKA Ausfuhrkredit-Gesellschaft mbH (Germany) has been guaranteed the return of the money borrowed by Belarusbank.

According to Minskenergo, the substation Brestskaya will be located in the south-western part of Minsk near the Minsk-Stolbtsy railway. It will provide electricity to the new neighborhood Druzhba and homes along Dzerzhinsky Avenue. This project provides for the construction of the closed-type substation with two transformers 40MVA each. The substation will be powered by two 110kV cable lines from the 110/10kV substation in Kurasovshchina.

The substation Kamennaya Gorka will be built in the north-western part of Minsk to supply electricity to the same-name residential neighborhood. This will also be a closed-type substation with two transformers 40MVA capacity each. The substation will be powered by two 110kV cable lines from the 110kV substation Sukharevo and 110kV substation Zhdanovichi.