Source Pravda.Ru

Russian utility may bid for power plant in alliance with foreign company

Russia's major power utility Lenenergo may enter into an alliance with a foreign energy company to bid in a tender to manage St. Petersburg's North-Western TETs co-generation plant, Lenenergo's General Director Andrey Likhachyov reported. Lenenergo operated in St. Petersburg and the Leningrad region. "We do not rule out the possibility of forming an alliance with a foreign company that would meet the terms of the tender," Likhachyov said. He did not, however, provide any other details saying "let's wait for the decision from RAO UES' board of directors and then the prospects of Lenenergo's participation in the tender will become clearer."

Russia's power grid monopoly RAOUES, which owns 46.67 percent in the plant, is going to transfer managing functions of North-Western TETs to a managing company in December 2003-January 2004. The winner of the tender will be required to raise the power plant's efficiency, cut costs (excluding fuel costs) by at least 10 percent within two years after signing the agreement and guarantee financing for the completion of the plant's second power unit. The required financing is estimated at $227 million, the Russia Journal reported.

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