AO MOSENERGO and EBRD signed the loan agreement on August 14. Part of the loan will be used to improve the structure of the company's liabilities. Another part will be used to finance the capital construction program. The term of the agreement extends to five years. AO MOSENERGO will transfer the last loan payment to EBRD in 2007.

The following representatives of AO MOSENERGO and EBRD attended the signing ceremony:

Arkady Yevstafyev, General Director of AO MOSENERGO;
Vladislav Nazin, Deputy General Director of AO MOSENERGO for Economic Issues;
Inna Tshovrebova, Deputy General Director of AO MOSENERGO for Public and Media Relations;
Tatyana Dronova, Chief Accountant of AO MOSENERGO;
Yevgeniya Zommers, Head of External Economic Relations Division of AO MOSENERGO;
Mikhail Korotkov, Acting Head of Government and Media Relations Department;
Anthony Marsh, Director for Energy, EBRD;
Richard Wallis, Head of Press Service, EBRD Moscow Division;
Nikolai Kolesnikov, senior banker; and
Sergei Bubnov, banker.

Aleksandr Tutov, deputy director of Sovlink, Vladimir Litvinenko, head of corporate and debt finance of Sovlink, and Dmitri Suschev, a lawyer from Linklaters SNG were also present at the ceremony.

The feasibility of obtaining this loan was first reviewed in November 2001. At that time representatives of both AO MOSENERGO and EBRD expressed mutual interest in continuing constructive cooperation.

AO MOSENERGO has already had positive co-operation experiences with EBRD. In 1998, EBRD jointly with the IFC extended a 50 million loan to AO MOSNERGO to reconstruct Zagorsk hydro-storage station (GAES).