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Economy
25 May 2016, 17:32

EBRD intends to finance projects in Belarus water sector

MINSK, 25 May (BelTA) - The European Bank for Reconstruction and Development (EBRD) intends to finance the projects to facilitate critical improvements in selected water supply and wastewater treatment services in Orsha, Polotsk and Lida, Jan Johansson, Principal Manager at Municipal & Environmental Infrastructure, EBRD, said at a seminar to discuss the reforms in Belarus water sector, BelTA has learned.

It is expected that a relevant agreement between Belarus and EBRD will be signed by the end of 2016.

The EBRD together with the Nordic Investment Bank already finances the projects to reconstruct the water treatment plants in Vitebsk, Slonim, Baranovichi, and to renovate wastewater treatment plants in Grodno and Brest. Now the equipment for these projects is being acquired with the help of the EBRD loans.

Jan Johansson recalled that ensuring the financial sustainability of water resources and improvement of tariff policy are some of the conditions stipulated in the loan agreements already concluded with Belarus. Investments are not the main objective of the Bank. We want to ensure that water treatments plants become cost-effective, financially independent, the EBRD representative stressed.

Igor Fomin, director of the price policy department at the Economy Ministry, noted that the water tariff policy aims to achieve a balance between the interests of consumers and producers. The country has already enforced a mechanism for differentiated payment: a certain amount of water is charged at subsidized rate, the rest at the rates consistent with full recovery of economic costs.

According to Igor Fomin, now the country is reviewing the social and economic development forecast of Belarus and budget for2017. The forecast should take into account the currency exchange rate, the GDP growth, wages, many macroeconomic factors, and the solvency of the population. Based on the current situation and the social and economic development forecast, decisions will be made regarding the tariff policy. Igor Fomin noted that now the EBRD helps Belarusian organizations optimize costs through the assimilation of new technologies.

As BelTA was told in the Economy Ministry of Belarus, the projects in the field of water management are financed by the EBRD, the Nordic Investment Bank and the Northern Dimension Environmental Partnership (NDEP) whose prime focus is reducing pollution of the Baltic Sea basin. Since the Belarusian water treatment plants involved in the project indirectly influence the Baltic Sea basin, the NDEP has supported the initiative. Belarus also gets assistance from the Swedish International Development Agency (SIDA) interested in the promotion of environmental projects.

The Economy Ministry expects that the scope of such projects with the European Bank for Reconstruction and Development will expand and new opportunities for cooperation between Belarus and the EBRD will be identified including in the energy and transport sectors.

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