Signing of Agreement on appropriation of funds for the Kurgan CHPP-2 thermal capacity output circuit construction

21 September 2009

At the International investment forum “Sochi-2009” held in the city of Sochi, on September 19, 2009 there was signed Agreement on appropriation of budgetary outlays from the RF Investment fund and Kurgan region budget resources for implementation of the regional investment project «Kurgan CHPP-2 construction».

The document was signed by Mr. Viktor Basargin, Minister of regional development of Russia, Mr. Nikolay Vinnichenko, Plenipotentiary representative of President of the RF in the Urals federal district, Mr. Oleg Bogomolov, Governor of the Kurgan region and Mr. Artyom Bikov, Chairman of the Board of Directors of LLC «Intertechelectro-New Generation». The Agreement stipulates that the parties are to provide together execution of the regional investment project «Kurgan CHPP-2 construction». The project performance characteristics are approved by the RF government decree. The Kurgan CHPP-2 construction project conforms to all the quantitative and qualitative criteria of efficiency of investment projects striving to receive state support. The overall amount budgetary outlays for construction of the power plant will be 1,328,500,000.00 rubles or 10% of the total amount of expenses on the Project. 991,600,000.00 rubles will be appropriated from the RF Investment fund, 336,900,000.00 rubles shall be outlaid from the Kurgan region budget resources. The state support means are raised for construction of thermal power output circuit that will be transferred to ownership of the Kurgan region.

Mr. Viktor Basargin, Minister of regional development remarked: «The Kurgan CHPP-2 construction project is long-expected for the Kurgan people, it eliminates many infrastructural problems in the Kurgan region and Urals federal district. This is one of the first Investment fund projects. Using its example we’ll review efficiency of similar projects for such regions as Kurgan».

Mr. Oleg Bogomolov, Governor of the Kurgan region, expressed his frank gratitude to everybody who signed the agreement for opportunity of the project execution on the territory of the Kurgan region: «The region government has been going for many years to the 2nd power plant construction to ensure power security of the region and city. The Kurgan CHPP-2 construction project is one of the first to receive the Investment fund state support outlays. I’m sincerely grateful to you for this support».

Mr. Nikolay Vinnichenko, Plenipotentiary representative of President of the RF in the Urals federal district expressed assurance in the fact that «implementation of such projects will show high force of the Kurgan region and Urals federal district and will let them remain on the forward positions».

Mr. Artyom Bikov, Chairman of the Board of Directors of LLC «Intertechelectro-New Generation» stressed that the appropriated budgetary outlays will allow achieving the project cost effectiveness and will facilitate its payback. «For our company, investor of the project, today’s event is extremely important. On the example of execution of the Kurgan CHPP-2 project we’ll be able to observe real support of private investments for regional power industry development on the federal and regional level».

The Kurgan CHPP-2 will comprise 2 power units, 111 MW each. Each power unit consists of the General Electric 76 MW PG 6111FA gas turbine, Siemens 35 MW SST-400 steam cogeneration turbine and HRSG. The CHPP installed electric output is 222 MW, heat power being 250 Gcal/h. The Kurgan CHPP-2 construction will allow improving the Kurgan region power supply, covering by more than 40% the existing power deficit and provide conditions for social and economic development of the city and region.