OREANDA-NEWS. On 17 February 2007, RAO UES Management Board Chairman Anatoly Chubais and Krasnodar Region Governor Alexander Tkachev have signed an Agreement on Cooperation in Implementing Priority Power Construction and Modernization Projects in the Region until 2011.

The Agreement envisages an all-round development of the region's generation capacity, grid facilities, and dispatch infrastructure using advanced technologies. It is planned to bring on line 1,100 MW of generation capacity, 7,200 MVA of transformer substations (29 substations and 59 transformers), and build 1,480 km of bulk transmission lines.

RAO UES companies also plan further expansion of the distribution grids in the area. They will construct and put into operation low voltage transformer substations with the total capacity of 1,842 MVA and 87,9 km of distribution lines.

The overall cost of the projects to be implemented under the Agreement is estimated at over RUB83,6 billion, of which RUB33,7 billion will be used to expand generation capacity and RUB49,9 billion will be invested in power grid facilities.