Investment agreement to build Zelva condensation power plant to be signed by late 2011

The investment agreement to build the Zelva condensation power plant in Grodno Oblast, will be signed by the end of 201, announced Mikhail Luzgin, Deputy Director General of the Belarusian state power engineering corporation Belenergo.

The project to build the coal-fired power plant with the approximate capacity of up to 920MW provides for using foreign direct investments. The project is estimated at $1.311 billion. Among potential investors are Russian, Czech, British and Chinese companies.

The output of the Zelva condensation power plant will be able to substitute 1.68 billion cubic meters of gas worth Br1.597 trillion per annum. The strategy for the development of Belarus’ energy potential expects the station to be built by 2015. The investor will be the one to choose the general contractor to build the installation.

The project will be implemented using public private partnership via the build-operate-transfer scheme. The investor is expected to build the power plant and operate it for a certain amount of time to return investments and gain profits. After that the power plant will be handed over to the Belarusian side for free.

The location to build the Zelva condensation power plant is 5km away from the town of Zelva, Grodno Oblast. There are plans to use Polish coal and Belarusian peat (at least 10% of the total fuel for two power-generating units of the power plant), making about 190,000 tonnes of oil equivalent part of the fuel budget. The energy the power plant will generate will be primarily used in Belarus.

All in all, Belenergo plans to commission 3,150MW of highly effective power-generating capacity instead of 2,336MW of outdated power-generating capacity. As a result, by the end of the five-year term specific fuel consumption will be reduced by 25-30 grams of oil equivalent per kilowatt-hour while natural gas consumption will be reduced by 2.1 billion cubic meters.

According to