LITGRID - Notification on material event

Litgrid borrows from NIB to partially fund LitPol Link

Vilnius, Lietuva, 2014-08-07 07:38 CEST (GLOBE NEWSWIRE) -- On 6 August 2014,
the Lithuanian electricity transmission system operator Litgrid and Nordic
Investment Bank (NIB) signed an agreement on 50 million euro loan for a period
of ten years. 

“LitPol Link interconnection is included in the list of the EU's Projects of
Common Interest. These projects are eligible to be financed from the Connecting
Europe Facility (CEF). We are in the process of drafting an application for
partial funding of the construction of the direct current back-to-back
converter with the 400 kV switchyard in Alytus and the high voltage overhead
power line from Alytus to the Lithuania-Poland border. However, even if LitPol
Link receives the biggest possible funding, the remaining part will have to be
covered by other means. To ensure timely construction of the interconnector we
search for alternative financing sources,“ pointed out Rimantas Busila, head of
the Finance Department and a member of the board of  Litgrid, which implements
the LitPol Link project. 

The preliminary value of the Lithuania-Poland interconnection LitPol Link is
put at LTL 1.2 billion (€ 340 million). The cost will be shared by the two
countries. The support of nearly LTL 15 million (€ 4,34 million) was received
through the EU's trans-European energy networks (TEN-E) programme and the
Ignalina International Decommissioning Support Fund to finance the preparatory
works of LitPol Link. This funding provided for the environment impact
assessment of the LitPol Link project as well as special planning and other
preparatory works were completed in 2009-2012. 

The LitPol Link project is a part of Baltic Energy Market Interconnection Plan
(BEMIP) aimed at connecting the energy systems of the Baltic Sea region
countries and eliminating energy islands in the European Union by 2015. 
Linking the power systems of Lithuania and Poland, LitPol Link will start
operating at the end of December 2015. 

LitPol Link consists of three key elements - transformer substations at the
both ends of the interconnection in Alytus (Lithuania) and Elk (Poland), the
direct current back-to-back converter in Alytus and the high voltage overhead
power line of a total length of 163 km. In Lithuania, LitPol Link's 400 kV high
voltage overhead power line will stretch for 51 km. 

Nordic Investment Bank is an international finance institution owned by eight
member countries: Denmark, Estonia, Iceland, Latvia, Lithuania, Norway, Finland
and Sweden. NIB funds public and private finance projects both in and outside
its member countries. NIB enjoys the highest credit ratings - AAA (Standard &
Poor's) and Aaa (Moody's). 

BEMIP is the Baltic Energy Market Interconnection Plan which was signed in 2009
by President of the European Commission Jose Manuel Barroso and Prime Ministers
of the Baltic Sea region countries. 


         Vilija Railaitė
         Head of Communications
         Phone +370 5278 2361
         Mobile +370 613 19977
         E-mail vilija.railaite@litgrid.eu