Eurasian Integration Yearbook 2012

Advanced Economic Cooperationin Sectors and IndustriesConstruction was scheduled to begin in 2011 and the new unit is due to becommissioned by 2017 (BigpowerNews. ru, 2011).Russia and BelarusThe investment cooperation between Russia and Belarus in 2008-2011 focusedon different areas, including the supply of power equipment. Since 2005, PowerMachines 1 has been involved in the upgrade of Belarus’ largest TPP, the LukomlGRES. In 2010 Power Machines OJSC and Vitebskenergo Republican UnitaryEnterprise signed a contract for the manufacture and supply of equipment toupgrade Unit 3 of the Lukoml GRES, with a contract value estimated at $7million (Power Machines, 2011; Energyland.info, 2010).Under the agreement signed in August 2010 with Vitebskenergo, the KalugaTurbine Works (part of the Power Machines group) manufactured and suppliedequipment for the Vitebsk TPP. The group also provided installation, start-upand training (Bigpowernews.ru, 2011).Vitebskenergo is implementing construction of the 21.6 MW Polotsk HPPon the Western Dvina, due to be commissioned in 2016. This project isimplemented under the State Programme for Innovative Development of theRepublic of Belarus for 2011-2015, and has an estimated cost of 450.3 billionBelarusian roubles (Bigpowernews.ru, 2011). After the purchase of the mainequipment a contract was concluded with Technopromexport (part of theRussian Technologies State Corporation) for the construction of a hydro unit atthe Polotsk plant. Technopromexport is to provide design, construction, supplyand installation of equipment, start-up and commissioning.Note:EDB and Vitebskenergo signed a ten-year loan agreement to finance the project in November 2010. The powerplant will generate 112 million kWh a year. The project cost is $1.427 billion, including $99.8 million providedby the EDB.On March 15, 2011, at a Council of Ministers session in Minsk, the governmentsof Russia and Belarus signed an agreement to construct a nuclear power plant inBelarus. The state enterprise «Directorate for Nuclear Power Plant Construction»(Belarus) and Atomstroyexport JSC (Russia) also signed a contract in 2011. Theparties agreed that construction costs would be based on the same pricingformula as those used for nuclear plants built in Russia (Energy Strategy, 2011).Loan financing for construction will be extended once the parties have signedan agreement on a Russian government loan. The estimated total investment(and loan amount respectively) for the Belarusian NPP will make up $6-6.51Russia’s leading producer of power equipment, uniting large electrical engineering enterprises, including the LeningradMetal Works, Energosila, the Kaluga Turbine Works, and the Turbine Blades Plant, among others.200 EDB Eurasian Integration Yearbook 2012