All agreed loans

Latvia. Latvenergo A/S

Date of agreement: 20 Oct 2008
Country: Latvia
Customer: Latvenergo A/S
Amount in EUR: EUR 50 million
Maturity: 15 years
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and water

This loan contributes to climate change mitigation: 25%


The 15-year-maturity loan totalling EUR 50 million has been provided for financing the modernisation of the generating capacity of Latvia's power utility Latvenergo, in particular hydropower plants on the Daugava river, as well as rehabilitation and energy efficiency investments in transmission and distribution networks.

Latvenergo is a state-owned joint stock company engaged in electricity transmission, distribution and trading as well as power and heat production in Latvia. Hydropower makes up 65% of Latvenergo's electricity production. In addition, the company provides some telecommunication and other related services. In 2007, the company produced 54% of domestic needs or 88% of total domestic production.

Sustainability summary

A part of the loan is being provided in the framework of the Bank's Climate Change, Energy Efficiency and Renewable Energy loan facility, CLEERE.

The investment involves a number of different projects in power production, as well as in the transmission and distribution network. The main part of the investments will be neutral in respect to their environmental impact, while some investments have positive environmental effects.

The main positive environmental impacts include an increase in the output of two units at the Plavinas hydropower plant as a result of replacing two old turbines, some reductions of NOx emissions to fulfil the EU BAT criteria, as well as better health and safety for the workers at some transmission substations and a reduced risk of harmful substance leakage to the environment from old hydropower turbines and transformer stations.