Moscow. 10 November 2006. OOO "Metallurgical Company "Estar" won the tender to select an investor to modernize OAO "Experimentalnaya TPP".

RAO "UES of Russia" had announced a tender to select an investor, pursuant to the Board resolution of 23 June 2006. The tender commission included the representatives of RAO "UES of Russia", OAO Southern Generation Company TGC-8", OAO "Experimentalnaya TPP", investment companies, and the Rostov Region Administration officials.

OOO "Metallurgical Company "Estar" will be required to provide finance for the project to modernize OAO "Experimentalnaya TPP" and ensure that the necessary capacity comes on line by the agreed deadline. The project provides for the construction of one or two power units with a capacity of at least 240 MW on the plant's site. RAO "UES of Russia" said that the priority for the project is the use of the advanced technology of circulating fluidized bed combustion of coal.

According to the Board resolutions of RAO "UES of Russia" of 30 August 2006, the investments needed to modernize the Eksperimentalnaya TPP will be raised through issuance of additional shares. The shares are to be placed through closed subscription. The investor may acquire up to a 75% minus one share in OAO "Experimentalnaya TPP". The placing price will be set not lower than the market value of the plant's shares.

The Experimentalnaya TPP is in urgent need of an upgrade due to the high degree of wear of its equipment, most of which was put into operation back in 1954. This results in a combination of low reliability and considerable expenses required to keep the power plant in working order.