The consulting company, Geninzhconsult, is due to launch an international tender for an environmental upgrade at the Baikal mill in Russia in June. Contractors will be invited to submit bids to provide a closed-loop water treatment system. The World Bank granted a $22.5 million loan to the Russian ministry of finance last year to help fund the $33.5 million project. The water treatment system will put an end to emissions from the mill into Lake Baikal in the south of Russia. The government's Federal Property Fund owns a 49% stake in Baikal and Continental Management holds the remaining shares. The government body vetoed the use of the World Bank loan earlier this year despite a government directive approving the loan. The Federal Property Fund then claimed its veto was a mistake. The industry grapevine is thick with rumors that the government has struggled to provide their part of the funds needed for the upgrade and may sell its stake in Baikal to raise cash. But a Continental Management spokesman pointed out that the terms of the World Bank credit require that the mill's ownership remains unchanged throughout the project. Baikal produces 160,000 tonnes/yr of bleached and unbleached softwood kraft pulp and rayon pulp. Continental Management plans to switch output on the mill's kraftliner to sack kraft by 2005. paperloop.com