Baku News

BAKU, October 11 (RIA Novosti, Gerai Dadashev) - The European Bank for Reconstruction and Development (EBRD) is set to loan 115 million euros for the modernization of Azerbaijan's hydroelectric power plant (HPP), the president of Azerenergy company said Tuesday. Etibar Pirverdiyev said the contract, to be signed in early 2006, included a 20-year-term loan with a three-year grace period at LIBOR rate plus 0.5% per year. The modernization project will increase the plant's power output from its current 2,100 megawatts to 2,500 megawatts and will enable the country to reduce annual fuel consumption by 400,000 metric tons. Azerbaijan's HPP is the largest in the region and produces more than 50% the country's electricity. The projected power output of the plant's eight units is 2,400 megawatts.