EBRD lends 150 million euros to Latvenergo
11.03.2010, 09:04EBRD is lending 150 million euros for upgrading power plants run by Latvia’s Latvenergo, the state-owned group whose operations include generation, transmission and distribution of electricity and heat energy. Specifically, the loan will help Riga CHP-2 power plant to replace old generating facilities with two new state-of-the-art combined cycle gas turbine (CCGT) units.
With EBRD support, Latvenergo will build the second CCGT unit at Riga CHP-2, to replace the outdated conventional gas-fired units. The new facility will have a capacity of 400 MW (electric) and 270 MW (thermal), benefiting from significantly improved efficiency. The first CCGT unit was successfully commissioned by Latvenergo in 2008.
EBRD is retaining 85 million euro of the total loan on its own account, with the remaining 65 million to be syndicated by UniCredit, DnB Nord and Nordea.
Latvenergo produces around 95 per cent of the total Latvian power capacity via its two combined heat and power facilities – Riga CHP-1 and Riga CHP-2 and its hydroelectric power plants.
“This is a very important project for Latvenergo AS and its implementation implies that one of the most modern and effective cogeneration plants in the region will be put into operation by the end of 2013 after the reconstruction of Riga TEC-2”, said Karlis Mikelsons, CEO of Latvenergo AS.
The construction of the second CCGT unit at Riga CHP-2 is being co-financed by a 100 million euro loan from the European Investment Bank, which was signed in October 2009.
In February 2010, the EBRD signed a 71 million euro loan to AB Lietuvos Elektrine for the construction of a new modern power generation facility in Lithuania.