Moscow, 1 August 2007. RAO "UES of Russia" has released a progress report on the implementation of the Investment Programme by the RAO UES companies in June-July 2007.

On 31 July 2007, OAO "WGC-4" started construction of a new 400 MW power unit at the Shaturskaya TPP. The project to construct a new PGU-400-based power unit is included in the list of top priority generation projects of the Unified Energy System of Russia. The new unit is scheduled to come on line in Q4 2009. The project cost is estimated at about RUB15 billion.

On 10 July 2007, OAO "HydroWGC" launched a project to build the Zagorskaya PSPP-2, a major pumped-storage power plant. The plant's designed capacity is 840 MW. The project is expected to cost about RUB30 billion. The first 420 MW power unit is scheduled to come on line at the Zagorskaya PSPP-2 in 2010, with the entire project to be completed in 2012.

On 5 July, the fifth 335-MW hydroelectric generating unit was brought on line at the Bureyskaya HPP. After the fifth generating unit became operational, the plant's installed capacity reached 1,340 MW and it is now the major power plant in the Far East of Russia.

In June-July, OAO "UES FGC" did a lot of work to modernize and place into operation some energy facilities. On 9 June, the Central branch of OAO "UES FGC" completed the construction of the 500 kV Voronezhskaya substation. The substation has significantly improved the reliability of electricity supply and helped increase volume of production at the large industrial facilities in Voronezh. The project cost is estimated at RUB856 million.

On 18 July, the Central branch of OAO "UES FGC" completed the construction of the 330 kV Frunzenskaya substation with 195 MVA of transformer capacity. The new facility will help increase reliability of the Belgorod energy node. It is planned that in 2008, a expansion project will be implemented at the Frunzenskaya substation providing for the creation of a new 330/110/10 kV autotransformer with 195 MVA of transformer capacity. As a result of the project the substation's capacity will increase twofold. The total amount of funds allocated for the project was in excess of RUB2.2 billion.

On 19 July, the West Siberia Transmission Grids branch of OAO "UES FGC" launched the construction of a 500 kV Kirpichnikovo substation in the Surgut Region of the Khanty-Mansiysk Autonomous Okrug. The first 501 MVA autotransformer group of a 501 MVA substation with lines the Surgutskaya TPP-2 - Ilkovo is scheduled to become operational in 2008. The project cost is estimated at over RUB6 billion.

On 27 July, the West Siberia Transmission Grids branch of OAO "UES FGC" brought on line the new 330 kV Knyazhegubskaya substation with a transmission line to the Kolskaya NPP in the Murmansk Region. The 330 kV Knyazhegubskaya substation is the first facility built beyond the Polar circle over the past twenty years. The most advanced technologies were used in the construction of the substation and transmission line. The facility will help improve the reliability of transmission of the power generated by the nuclear power plant to the Kolskaya energy system, ensure uninterrupted electricity supply via transmission grids, and cut electricity transit losses.

Also, in June-July 2007, the RAO UES distribution grid companies brought on line and completed the modernization of twenty-six 110 kV substations and about 170 km of transmission lines.