Moscow, 15 February 2007. Based on the Investment Programme of the RAO UES energy companies for the period until 2011, RAO "UES of Russia" has prepared the Forecast of Demand for capital power equipment. A thoroughly prepared list is, in essence, a consolidated equipment order for power engineering companies and energy equipment suppliers. This means that RAO "UES of Russia" has confirmed its long-term interest in procuring equipment made by Russian and foreign manufacturers.

By 2001, the energy companies of RAO "UES of Russia" will build 34,200 MW of generating capacity. The total amount of funds to be provided for the investment programmes will total RUB3.1 trillion. The investment programme will help fully cover the demand for electricity and heat from the rapidly growing economy and housing sector and prevent capacity shortfalls. RAO UES companies will spend over RUB1.8 trillion in funds on new power unit projects. The large-scale generation capacity expansion will be accompanied with adequate construction of power grids. As much as RUB1.3 trillion in funds will be spent on the grid infrastructure development during the period until 2011.

The investment programme envisages construction of modern combined-cycle power plants, which will need over 100 gas turbines, 67 steam turbines, and 125 waste heat recovery boilers. Over 70 steam turbines are needed for the large-scale construction of coal-fired power units with circulating fluidized bed combustion, VIR-technology, and those operating under ultra-supercritical steam conditions. Furthermore, the energy industry will need over 150 transformers with a combined capacity of 50,000 MVA to be installed at the power plants, 260 turbine generators with the capacity of 45,000 MW, and 48 boiler plants with 45 t/h steam generating capacity.

In order to implement the investment programme of OAO "HydroWGC", the energy company will need 45 hydroturbines with a combined capacity of 5,000 MW, 43 hydrogenerators, and 18 transformers with the capacity of 3,500 MW.

Also, 25 hydroturbines with the combined capacity of 252 MW and 25 hydrogenerators are needed to modernize the small-scale HPPs which are part of TGCs.

Summary Forecast of Demand for TPP Power Equipment Needed to Implement the RAO UES Investment Programme 2007-2010

During the period until 2011, over RUB630 billion in funds will be spent on procurement of principal thermal power equipment (generators, turbines, etc.). The expenses on procurement of high-voltage equipment and materials for bulk transmission grids during the period will make about RUB200 billion. The construction material manufacturers will also receive significant orders. Concrete procurements are estimated at RUB19 billion. It is planned that over RUB43 billion will be spent for design and research works, and the market for construction and installation works at the heating facilities will be in excess of RUB265 billion.

Equipment deliveries, as well as construction, installation, and commissioning works will be procured on a competitive basis, including through the B2B-Enrgo marketplace, which ensures maximum transparency of the procurement process.