The Board of Directors of Generation Company Four of the Wholesale Electric Power Market (OGK-4) has approved the Contract Agreement between OGK-4 and Teploelektroproekt Institute Subsidiary of UES Engineering Center, which is a related party transaction. Under the Agreement, the Contractor is to undertake, according to the Customer's instructions, design work for the entire technological complex related to the creation of the CCP-400-based replacement capacity at Shaturskaya TPP Subsidiary of OGK-4.
Earlier, OGK-4 announced an open single-stage bidding to select the general contractor for the CCP-400-based Replacement Capacity Project to be implemented at Shaturskaya TPP. With the preferred bidder, the Company will entered into the General Contractor Agreement for design, delivery of equipment and materials, and turnkey construction of 400-MW single-shaft combined-cycle plant.
The investment project related to the creation of the CCP-400-based replacement capacity at Shaturskaya TPP has been approved by the Investment Committee of RAO UES of Russia The Project is on the List of High Priority Sites for the Commissioning of Generating Facilities Within the Unified Energy System of Russia. The commissioning of the CCP-400 unit at Shaturskaya TPP is scheduled for December 2008, with the Project cost to exceed 10 billion rubles. The project will be financed from the Company's own funds and raised funds, including those raised through the placement of additional shares.