The volume of the dedicated credit lines opened up for infrastructure projects amounts to $13 billion, Belarus’ Deputy Finance Minister Maxim Yermolovich said during the parliamentary hearings on PPP.
The construction of the Belarusian nuclear power plant (BelNPP) is the largest project. The sum of over $10 billion was borrowed from the Russian Government and Vnesheconombank. Bank of China allocated over $2 billion of credit resources for the Belarusian power engineering and road building industries.
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“The International Bank for Reconstruction and Development (IBRD) is investing around $800 million in the modernization of social facilities, rehabilitation of Chernobyl-affected regions, development of the water-supply and water-disposal systems, and others.
No doubt, such credits are more convenient, much better than those on the market. For example, the average interest rate of the IBRD is 0.5%, and the borrowing period is 15.5 years. But these resources are even more limited than the budgetary ones.
The PPP is a good alternative. It is a more efficient and attractive mechanism taking into account the sovereign risks.”
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