Belarus’ Government grants tax relief on Belarus NPP power grid linkup project

The Government of Belarus included the power grid linkup construction project of the Belarusian power nuclear plant into the list of investment projects which technological equipment and components are exempted from customs import duties and VAT. The decision is contained in Council of Ministers’ Resolution No.314 of 4 April 2014, BelTA learnt from the government’s press service.

The resolution "expands the list of investment projects financed by means of external government borrowings and foreign loans attracted under the guarantees of the Government of the Republic of Belarus intended for the implementation of projects which technological equipment and components are imported to the Republic of Belarus free from customs duties and value added tax approved by Resolution of the Council of Ministers of the Republic of Belarus No.572 of 4 May 2009, position “Construction of the Nuclear Power Plant in the Republic of Belarus. Electricity Generation and Power Grid Linkup.”

According to the document, equipment and component parts worth of $55.254 million are exempted from customs duties and VAT.

The decision was adopted in line with Decree No.252 of 18 April 2006 approving the provision on external government loans and foreign loans attracted under the guarantees of the Government of the Republic of Belarus and Decree No.168 of 21 March 2008 on certain measures to implement investment projects financed by means of external government borrowings and foreign loans attracted under the guarantees of the Government of the Republic of Belarus, as well as with a view to implement the loan agreement on the issue of a soft buyer loan for the implementation of the project “The construction of the Nuclear Power Plant in the Republic of Belarus. Electricity Generation and Power Grid Linkup” between the Government of Belarus and the Export-Import Bank of China of 16 July 2013.

It has been earlier reported that the construction of the system to collect the electricity the Belarusian nuclear power plant will generate and deliver into the national power grid began on 3 March 2014. The first phase of the construction should be completed by December 2017. The project envisages a $323.817 million preferential-rate buyer loan that the Export-Import Bank of China. The money will cover 95% of the cost. The Grodno Oblast electrical company Grodnoenergo is the customer of the construction project. North China Power Engineering Company (NCPE) has been chosen to be the general contractor for the project. In line with the Grodnoenergo-NCPE contract Belarusian construction and installation companies will have to perform at least 45% of the work involved in implementing the project.

The project to build the system to collect the electricity the Belarusian nuclear power plant will generate and connect the power plant with the national power grid provides for building over 1,000km of 330kV overhead high-voltage power lines in Minsk Oblast, Grodno Oblast, and Vitebsk Oblast. As much as 672.4km of high-voltage power lines will be reconstructed. Four substations will be reconstructed and 330kV cells will be built in Minsk, Ross, Stolbtsy, and Smorgon. A new 330kV transformer substation will be built in Postavy, Vitebsk Oblast. The second auto transformer will be installed at the 330kV substation in Smorgon.

Located at the Ostrovets site in Grodno Oblast, the Belarusian nuclear power plant will boast two power-generating units with the total capacity of up to 2,400MW (1,200MW each). The Russian design AES-2006 was chosen to build the nuclear power plant. The design is compliant with international norms and recommendations of the International Atomic Energy Agency. The first power-generating unit is scheduled to go online in 2018.