Due to preliminary forecasts, cost of the energy objects may reach RUR 400 million. The source of financing is payment for technical connection.

Implementation of a huge investment project is planned at the boundary between the Saint Petersburg and Novgorod regions with involvement of Paroc Group Oy AB Finnish Company. The project is building of a plant for production of mineral-cotton heat insulation on the basis of basalt fiber.

Negotiations on possibilities to build a Paroc plant in Russia were carried out by Finnish investors in 2007. The first meeting of representatives of the Company with authorities of the Novgorod region supporting the idea took place that year. As of today, the project with involvement of foreign investors is being actively implemented including constructive solution of issues on electric energy supply to future plant in Chudovo town which is to be provided for by “Novgorodenergo”, a branch of IDGC of North-West, JSC.

According to Alexander Vinogradov, Head of the Department for Technical Conditions Preparation of IDGC of North-West, JSC, investors applied for 22,5 mWt power to energy engineers. Under implementation of the investment projects, building of the new modern “Paroc RUS” 110/10 kV substation is planned to be carried out up to the end of the year of 2011.

The substation will both provide for reliable electric energy supply of enterprises on production of modern heat insulation materials at first stage and allow for active development of power-consuming industry. It means new working places and high-quality products for building industry at Russian market.

Directors and specialists of IDGC of North-West, JSC, of branches “Novgorodenergo”, “Peterburgenergostroy”, LLC project organization and representatives of Paroc Group Oy AB company have implemented another working meeting in Saint Petersburg. At the meeting, they discussed several technical issues of future building, selection of equipment for the energy object. Implementation of products of all-world well-known foreign companies such as ABB and Siemens are planned together with Russian ones, such as “Togliatti Transformer”, LLC and “Cheboksary Electric Equipment Plant” (“CHEAZ”).

“I would emphasize the fact that the substitution of import is not the end in itself. Sometimes, it is profitable to function within the framework of the international division of labor”, noted Vladimir Putin, Head of Government,  taking the floor at the meeting of the presidium  of the Russian Federation Government at the beginning of November  . The regions share the position of the Head of Government and implement the correspondent technical policy. At a rough guess, the cost of 110/10 kV substation “Parok Rus” which will connect s “Novgorodenero” object with two lines of 110 kV to 330 kV substation “Chudovo” (Bulk power systems of North-West) will account for  from RUR 300 to 400 million depending on the outfit  the substation will be equipped with,” noted Alexander Vonogradov, commenting on the  results of the meeting with the Finnish partners.

The source of financing of the new construction, which is planned to be started by Novgorodenergo in 2010 is the payment for technological connection to the electric grids of the grid branch of IDGC of North-West.

Note: PAROC is one of the European leaders in production of the mineral-cotton heat insulation on the basis of the basalt fibers. For more than 65 years the Company has been producing and realizing the heat insulation material for the wide spectrum of the building and industrial constrictions.

The basic raw stock for Paroc materials is whinstone. The molten rock is transformed to the stone fiber which is the basis of the material with the high heat insulation, fire proof and mechanical characteristics. Due to this, the material meets the highest requirements.