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European Bank lends DM 142.6 million for refurbishment of Drava River Hydroelectric Facility in Slovenia
The European Bank for Reconstruction and Development and the Drava Electricity Company of Maribor (DEM) today signed a loan agreement of DM 142.6 million (ECU 73.5 million equivalent) to refurbish three hydroelectric power stations and five switchyards, and to build an automatic control centre forming part of the Drava river hydroelectric power chain.
Jacques Attali, President of the Bank, said: "Without refurbishment, the power stations are likely to fail in the near future and cause disruptions in the power system, leading to a wastage of the water flow in the river. The project will improve the environmental condition of the river and ensure reliable power generation for another 35 years to meet Slovenia's electricity requirements."
The project involves renewing obsolete equipment at the plants and switchyards which will increase installed generating capacity by 10 percent; providing the entire chain with an automatic control system, to improve operating efficiency; and strengthening the financial capabilities of DEM, the borrower, a state-owned generating company.
The total project cost is estimated at ECU 128.8 million. DEM will contribute 43 per cent. The project has also attracted considerable interest from export credit agencies. The contractors, suppliers, banks and export credit agencies are in the process of exploring with the borrower which components of the project their cofinancing will support.
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