TGC-1 announces JV agreement with Leader Asset Management to complete 450 MW CCGT project at Pravoberezhnaya CHPP in St. Petersburg

Under the terms of agreement the parties intend to set up a Special Purpose Vehicle (SPV) on a 50/50 basis with an authorized capital of RUR 5 bn that will assume ownership of CCGT-unit. The proceeds will be employed to finance the construction as well to partially buy-out the construction in process of the power unit from TGC-1. Long-term bond issues will be used to finance further construction works. After completion and commissioning of the unit TGC-1 will lease and operate the newly-built facilities.
The construction of the CCGT-unit at Pravoberezhnaya CHPP with of 450MW of electric and 316 GCal/h of heat production capacity started in 2007 as part of CAPEX commitment (within the framework of Capacity Supply Agreement). The project is aimed at covering the growing consumption of energy and increasing the reliability and quality of heat supply in the western districts of St. Petersburg. The commissioning of the unit is scheduled for the end of 2012.
Pravoberezhnaya CHPP comprises power-generating unit of 180MW, put into operation in 2006, and heat production facilities of 1120 GCal/h (or 1302 MW). Earlier this year TGC-1 fully shut down the old section of the CHPP with obsolete generating equipment of 64MW of electric and 300 GCal/h of heat production capacity. Thus, after 450MW CCGT is commissioned Pravoberezhaya CHPP, along with Pervomayskaya CHPP, will be the most modern power plant of TGC-1.