MOSCOW, October 11 (RIA Novosti) - The Federal Grid Company approved a 5-billion ruble loan (about $175 million) from the European Bank for Reconstruction and Development to modernize electricity transmission lines, a company spokesman said Tuesday.
The Federal Grid Company, which is Russia's electricity transmission monopoly and is wholly owned by RAO Unified Energy Systems (RAO UES), will repay the eight-year loan. The credit was approved by its board at MosPrime Rate (Moscow Prime Offered Rate) plus 2.15% per annum.
The FGC will use the loan to implement a comprehensive program to modernize the electrical grids of RAO UES in 2004-2012.
The company will take out the loan in compliance with its medium-term investment program approved by the UES board in 2003.
MosPrime Rate is an indicative rate calculated on the basis of rates for ruble-denominated deposits declared by leading players on the Russian money market for first-class financial institutions.
