OREANDA-NEWS. The Chelyabinsk Region Government and RAO "UES of Russia", with the participation of Presidential Plenipotentiary Representative to the Urals Federal District, have signed an Agreement on Cooperation in implementing capital investment projects to build and refurbish the electric power facilities in the region's energy system until 2011.

The Agreement provides for the overall development of the generation and grid facilities in the Chelyabinsk Region and the use of state-of-the art technologies.

In particular, it includes investment projects to build and modernize 1,125 MW of generating capacity by 2011 and a further 225 MW in 2012, construct different voltage substations with 1,973 MVA of transformer capacity by 2011 and 250 MVA in 2012, about 900 km of bulk transmission lines and substations with 676 MVA of transformer capacity, and about 100 km of lines in the region's distribution networks.

The amount of funds needed to finance the capital investment projects under the Agreement is estimated at over RUB61.2 billion, of which RUB39,4 billion will be spent to expand generation capacity and RUB21,8 billion will be invested in the power grid facilities.

The projects will be financed with own resources and borrowings of RAO UES companies operating in the Chelyabinsk Region, including the proceeds from additional share offerings by generation companies, connection charges for grid companies, allocations from the federal and regional budgets, off-budget sources, and private investments.