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EBRD LENDS TO PROMOTE ENERGY SECTOR REFORM IN AZERBAIJAN
CBN, November 8, 2006
A $115 million loan from EBRD to Azerenergy JSC for the rehabilitation of Azerbaijan Thermal Power Plant (TPP) is set to boost reform in Azerbaijan's energy sector. The loan will finance investments to improve the plant's reliability, efficiency, remedy health and safety conditions, and reduce carbon dioxide emissions. With a capacity of 2,400 MW, Azerbaijan TPP is the country's largest power plant in Azerbaijan.
The Head of Azerenergy JSC Etibar Pirverdiyev said the equipment in many power plants is from Soviet times, and now it is time to modernize it.
The sovereign-guaranteed loan addresses reform in the energy sector, which Azerbaijan has committed itself to implementing, in close cooperation with international financial institutions. The EBRD loan pursues a number of challenging objectives in term of tariff regulation, financial reporting and qualification under the Kyoto Protocol (Countries that ratify this protocol commit to reduce their emissions of carbon dioxide and five other greenhouse gases). It is estimated that carbon dioxide emissions could be reduced by 8.2 million tons between 2006 and 2012, thus allowing the company to qualify
for carbon credits, which will provide an additional source of income.
Azerbaijan TPP consists of eight dual fuel, gas and heavy fuel oil units of 300 MW each. The plant is currently operating below its potential capacity and efficiency levels. This has strong repercussions, as Azerbaijan TPP created half the electricity needed in the country, and demand continues to increase thanks to a fast growing economy.
Mike Davey, EBRD Director for the Caucasus, Moldova and Belarus, said the loan will ensure implementation of energy sector reform, which will lead to greater transparency and efficiency. Together, with the increased output of Azerbaijan TPP after implementation of the rehabilitation program, this will help Azerbaijan to significantly improve its energy security and reduce carbon dioxide emissions.
EBRD has supporting projects in Azerbaijan's energy sector since 1994. It financed the Yenikend hydropower plant, which was completed in 2000, and the Mingechaur hydropower plant, which was completed in 2003. The loan to Azerbaijan is supported by technical cooperation grants from the US Trade Development Agency and EBRD's donor-sponsored ETC Fund.
AZERBAIJAN TOPS GLOBAL GROWTH - EBRD
ENHANCING ACCESS TO FINANCE FOR LOCAL BUSINESSES
EBRD EXPANDS MICROFINANCE IN AZERBAIJAN
EBRD TRANSITION REPORT 2006: DOMESTIC CONSUMPTION DRIVES GROWTH IN EASTERN EUROPE
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December 2006, Issue No. 44
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AZERBAIJANI ANSWER TO OIL GLUT: BATHE IN IT
International Herald Tribune, November 28, 2006
NAFTALAN, Azerbaijan: Outside this improbable spa in a remote part of the former Soviet Union, oil rigs bob on a hardscrabble plain of rocks, shrubs and rusting industrial equipment that could easily pass for a stretch of West Texas.
Inside, Ramil Mutukhov, a lanky 25- year-old, prepares to be pampered and preened, scrubbed and peeled in a bath of pure crude oil. He undresses, hangs his trousers and sweatshirt on a peg, pulls off socks and underwear and folds up a wad of brown paper towels. He will need those later.
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