The European Investment Bank (EIB) is lending PLN 600 million (some EUR 150 million) to finance the construction of two sections of the natural gas transmission system in north-west and central Poland. This project will help Poland’s energy sector to use increasingly environmentally friendly energy resources and also contribute to the implementation of the EU Strategy for the Baltic Sea Region in the energy and environment areas.
The EIB loan will enable better usage of gas storage facilities and facilitate gas transmission from the planned LNG terminal at the Baltic Sea port of Swinoujscie, so contributing to the diversification of energy resources in Poland. The upgrading and expansion of the gas transmission system will provide the supply needed to meet domestic demand for gas, which will replace less efficient and more polluting sources of energy, with positive implications for the environment.
The project involves the construction of two high pressure sections of gas transmission pipeline with a total length of 441 km: from Szczecin to Gdansk and Rembelszczyzna to Gustorzyn, including corresponding compressor stations and associated works. This will extend gasification in regions of Poland with a hitherto limited gas supply, particularly in the Zachodniopomorskie and Pomorskie voivodeships.
The operator Gazociągów Przesyłowych Gaz-System S.A. is the borrower of the EIB loan and the promoter of this project, which is scheduled to be implemented by the end of the first half of 2014.
Background:
The EIB is the long-term lending bank of the European Union. Its main task is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Besides supporting projects in the EU Member States, its lending activities also include the financing of investments in future Member States of the EU and EU partner countries.
The EIB raises substantial volumes of funds on the capital markets, which it lends on favourable terms to projects furthering EU policy objectives. It is the largest supranational borrower and its consistent AAA rating is underpinned by firm shareholder support, a strong capital base, excellent asset quality, conservative risk management and a sound funding strategy.
600 million Polish zloty = 209.9592 million U.S. dollars
[mappress] Source: EIB, July 15, 2011;