Europe

Russia’s Hydro OGK wins US$233.5 million EBRD loan

Russian hydropower company Hydro OGK, owned by electricity monopoly Unified Energy Systems (UES), has secured a 6.3 billion ruble (US$233.5 million) loan from the European Bank for Reconstruction and Development, the company said.

The EBRD board has approved the loan and the two sides plan to sign a deal in September, Hydro said in a July 26 statement.

EBRD would finance part of the loan through its own means over 14 years. A second part of the loan has been syndicated to commercial banks for eight to ten years, it said.

The company said the loan would be used to upgrade infrastructure at hydroelectric plants of the Volga-Kama river cascade in a 10.9 billion ruble (US$403 million) program set for completion by 2020. Installed capacity at the Volga-Kama plants would increase by 600 MW on completion of the modernization program.

Hydro OGK, which is wholly owned by UES, took over the electricity monopoly’s hydropower assets as part of Russia’s power sector reforms. Its capacity is expected to increase to 23,300 MW by the end of the company’s restructuring, from 18,400 MW today.