EBRD Will Allocate 29 Million Euro for the Services Project in Ugra

13.07.2009 — News

UGRA.

The European Bank for Reconstruction and Development (EBRD) will allocate 29 million Euro for the modernisation of heating systems in remote villages of Ugra. The loan for 13 years guaranteed by the regional Government will be given to OAO Ugra Territorial Energy Company.

EBRD's press service informed RusBusinessNews that the borrower has developed a programme to use wood waste for heating. Foreign consultants participated in the programme development supported financially by the Government of Japan. This is the sixth project financed by this bank in the municipal infrastructure of Ugra.

In 14 villages, instead of inefficient diesel and mazut generators, there will be installed electricity and heat plants running on biomass or boilers utilising both natural and associated petroleum gas which is burned in flares currently. The loan will enable the construction of the biomass pellet and brick plant to process timber processing waste.

The population of Ugra is 1.5 million people, quarter of these people live in small villages connected to the system of centralised district heating and electricity supply traditionally employed in Russia.