OFF THE WIRE

Building up the national stock

Fuel companies operating in Lithuania will have to help build up national oil stocks following a government order to bring the country up to European Union compliance.

Lithuania's Parliament passed a law June 25 requiring fuel companies to pay 50 percent of the costs of storage. The government will pay the other half.

Under the law, Lithuania must accumulate 200,000 tons of gasoline, diesel fuel and kerosene by late 2009. It will cost an estimated 180 million litas ($50 million) to build up the stocks.

Businesses say they will be forced to raise prices to cover the costs. (Baltic News Service)

Ventspils port expansion OK'd

The Latvian government on June 25 approved a proposal to expand the Ventspils port to 2.624 hectares as required under the free port's development concept.

The area of the port is currently 1.728 hectares.

The land to be added to the port will be used to build an oil refinery, a wood-processing complex, a plant producing raw plastic materials and other projects that have stalled because of a lack of room. (BNS)

Alcohol ads reconsidered

The Lithuanian Parliament on June 20 approved amendments proposed by President Valdus Adamkus to the Law on Alcohol Control to allow outdoor advertising for beer and wine.

Adamkus said the advertising was necessary to help support various events and sports organizations.

Amendments adopted May 23 banned alcohol ads on outdoor stands and vehicles, and during sports matches or cultural events. The restrictions had sparked protests by business, sports and cultural organizations.

Lithuanian breweries are one of the largest sponsors of sporting and cultural events in the country, with plans to spend 7.5 million litas ($2.08) this year. (BNS)

Mazeikiu to up production

The Lithuanian oil group Mazeikiu Nafta, operated by U.S.-based Williams International, expects to step up production beginning next month.

The Russian oil company Yukos, which closed a deal last week to buy a 26 percent stake in the company that included guaranteed crude supplies, will increase shipments by about 50,000 tons per month to 400,000 tons beginning in July, said Mazeikiu Nafta spokesman Tadas Augustauskas. (BNS)

Eesti Energia eyes more renovation funding

The state-owned power utility Eesti Energia is expected to sign contracts with the Nordic Investment Bank and the state-owned German lender Kreditanstalt fur Wiederaufbau to borrow 150 million euros ($145.63 million) to help fund the renovation of its Narva power plants, said Eesti Energia spokesman Erki Peegel.

Eesti Energia will borrow 60 million euros from the Nordic Investment Bank and 90 million euros from KfW.

Peegel said the term of the loans would be 15 years and declined to provide the interest rates.

Eesti Energia also plans to issue bonds in the near future for 100 million to 200 million euros.

The company hopes to raise 5 billion kroons ($308.64 million) in external financing over the next three years to fund ongoing renovations to the oil-shale plants, the prime source of Estonia's electricity. (BNS)

World Bank OKs education loan

The World Bank has approved a 29 million euro ($28.15 million) loan to improve educational instruction and rehabilitate school buildings in Lithuania, the bank's local office said here June 21.

The project provides for upgrading facilities at 62 primary schools.

The loan will also be used to enhance learning conditions in basic schools by supplying teaching aids and new buses.

The cost of the loan is fixed at 0.55 percent over LIBOR, repayable in 17 years, including a five-year grace period.

The World Bank has committed $490.8 million for 19 projects in Lithuania since the country joined the institution in 1992. (Agence France-Presse)

British Airways to implement Latvian software

The Latvian software company Vide Infra Grupa has developed an Internet-based information system for British Airways to be used by corporate clients in Eastern and Southeastern Europe.

Toms Andersons, the British carrier's Baltic representative, said the computer system would enable corporate officers frequently flying with British Airways to receive information about flights, prices and special offers and to book tickets.

The new system will be introduced in Latvia, Israel, Turkey, Poland, the Czech Republic and Croatia this summer. (BNS)

Kaunas shopping mall moving along

The German retailer Dr. Werner Pfeifer Objekt-Entwicklung said that talks were underway with two Lithuanian construction firms to build a shopping and entertainment complex in Kaunas.

Uwe Griem, director of the German company's subsidiary Baltic Shopping Centers, said the firm would invest 75 million euros ($72.81 million) in the complex, which he expects to be completed within a year.

The 70,000-square-meter shopping center will be built near the highway linking Kaunas, Vilnius and the port city of Klaipeda. It will house retail shops, movie theaters and restaurants. (BNS)