IBRD $42.5m loan for rubbish recycling plant construction in Grodno

The construction of a rubbish recycling plant in Grodno will use a $42.5 million loan of the International Bank for Reconstruction and Development. It is envisaged in the international agreement that was approved by Presidential Decree No 501 on 29 September.

The decree approves the loan agreement (Integrated Solid Waste Management Project) and the grant agreement with Global Environment Facility (GEF) for the Integrated Solid Waste Management Project. The agreements were concluded by Belarus and the International Bank for Reconstruction and Development.

The agreement provides for a $42,506 million loan for Belarus to construct a waste mechanical sorting company in Grodno as well as the improvement of the whole urban recycling system. The loan is provided for 15 years with an annual 1% interest rate and 5-year grace period. The loan and its interests will be repaid by the national budget and the budget of Grodno Oblast.

The loan will not exceed the limit of the country’s external public debt fixed by the Belarusian law “On the national budget 2010”.

The grant agreement enshrines a $5.5 million grant for Belarus for the implementation of the project on constructing the waste mechanical sorting company in Grodno.

The project will be financed at the amount of $75.136 million, including the IBRD resources ($42.506 million), a GEF grant ($5.5 million) and domestic funds ($27.13 million).

The loan and grant agreements signed in Minsk on 5 July 2010 do not contain any provisions contradicting the Constitution of the Republic of Belarus, other legislative acts of the country.

The IBRD loan and GEF grant will help Grodno build up a modern rubbish recycling plant, align national environmentally sound management.

According to Belarusian portal belTA.by