VEB approves financing the completion of BEMO projects
UC RUSAL has announced that the supervisory board of Vneshekonombank has approved the allocation of RUR 50 billion in loans (about USD 1.7 billion) to complete the Boguchany Energy and Metals Complex (BEMO) project.So the construction of the Boguchany hydroelectric power plant (Boguchany HPP) can be completed VEB will open a credit line for the Boguchany HPP with a limit of RUR 28.1 billion for a period of 16 years. BEMO smelter will get another loan of RUR 21.9 billion in USD for 14 years. This last loan will be used to complete the construction of the first stage of the Boguchany aluminium smelter (BEMO smelter) and accompanying infrastructure.
The approved loans plus the funds to be allocated by the investors in the project in 2010 will cover all the expenses of completing BOHPP and the first stage of BEMO smelter.
At the moment the first stage of BEMO smelter with annual capacity of 147 thou. tonnes per year is about 30% complete. Construction is to be resumed in September and the production facilities comprising the first stage are to go into operation in 2013.
The aforementioned loans will be provided on the principles of project financing, without the use of the funds of the project investors. Collateral for the loans will be the assets and shares of the companies included in the project. Funds will be made available after the parties sign the loan documentation and the necessary corporate approvals are given, including the approval of UC RUSAL’s lenders.
The BEMO project is a key element in the integrated development of the Lower Angara region. It is being jointly implemented by UC RUSAL and RusHydro, with each company having a 50% stake in the project. The BEMO project includes completion of the Boguchany HPP on the Angara river with an installed capacity of 3,000 MW and construction of an aluminium smelter with annual capacity of 600 thou. tonnes per year, which will become one of the key consumers of the electricity generated by the new power plant. Successful implementation of the BEMO project will make it possible to provide electricity to the entire lower Angara region, boosting industrial development as well as development of rail and road transport.