Moscow, 30 June. The act of acceptance of the first hydroelectric unit of Bureyskaya HPP (Talakan settlement of Amurskaya Region) has been signed today by the central trial board.

Construction of Bureyskaya HPP, which is the largest hydroelectric building site in Russia in the past 15 years, is the most vital part of the governmental program for the development of the Far East and Zabaikalye Region. The energy system of the Far East is isolated from the Unified Energy System of Russia and is by 40% dependent on the imported coals, which are brought in the region from as far as 3-3.5 thousand km away. These factors, to a large extent, reduce the reliability of the East energy system and provoke rise of electricity tariffs, which are the highest in Russia. The average tariff for electricity in the Far East region amounts to 121.3 kop/kWh against 72.07 kop/kWh in the rest parts of Russia. The high tariffs restrict the growth of industrial production in the region.

Launch of Bureyskaya HPP will allow to provide for the reliable supply of electricity to the Far East region’s facilities and, first of all, to Primorsky Kray, will reduce the dependence of the region’s electricity sector on the imported coals and black oil, and will make electricity tariffs lower.

Already in the year 2004, the electricity generated by Bureyskaya HPP will save over 1.75 mln tones of coal, and when the power plant is be put into full operation, the annual savings will amount to 5.2 mln tones of coal. The annual efficiency resulting from reduced cost of imported coals in 2004 will make 1.3 mln Rubles, and beginning in the year 2007 will exceed 4.7 mln Rubles.

The tariff set by the Federal Energy Commission (FEC) of Russia for Bureyskaya HPP allows the regional energy commissions of the Far East region to take respective decisions to reduce the electricity tariffs for households beginning on 1 July 2003. In accordance with the FEC figures, the tariff for households in Amurskaya Region, Khabarovsky Kray and Jewish Autonomous Region (JAR) may be reduced by 7-8%, and in Primorksy Kray – by 9-10%. The total saving of households’ money in the regions, resulting from lower tariffs, can make 133-144 mln Rubles in the second half of 2003, and in particular, 22-25 mln Rubles - in Amurskaya Region, 35-38 mln Rubles - in Khabarovsky Kray, 2-4 mln Rubles - in JAR, and 74-80 mln Rubles - in Primorsky Kray.

Bureyskaya HPP has been assigned among the prioritized building sites of the energy holding. In 2000, RAO “UES of Russia” allocated 609.7 mln Rubles of own funds for continuation of plant’s construction, in 2001 – 1,106 bln Rubles, and in 2002 – 5,908.1 bln Rubles. In 2003 RAO “UES of Russia” will invest 7 bln Rubles into the plant’s construction.

The second hydroelectric unit of Bureyskaya HPP will be put into operation already in the end of 2003, whereas the plant will be commissioned in full in 2007 making Bureyakaya HPP the largest power plant in the Far East. The capacity of the plant will amount to 2000 MW with the average electricity generation of 7.1 bln kWh. Currently, all power plants of the Far East generate 38 bln kWh of electricity per year. In 2004, Bureyskaya HPP’s capacities will be enough to produce 2.1 bln kWh of electricity.

Bureyskaya HPP is the power plant of the federal importance.

As at 9 April 2003, the share of RAO “UES of Russia” in the authorized capital of Bureyskaya HPP amounted to 63.8%, the share of the Ministry of Property Relations of the Russian Federation – to 17.2%, the share of OAO “Investment Company “Olma” – 8.7%, and the share of the Governmental “Foundation of Amurskaya Region Property” – 5%.