OREANDA-NEWS. On 14 July 2008 was announced, that a meeting was held in Izhevsk between IES-Holding President Mikhail Slobodin and President of Udmurtia Aleksandr Volkov, also attended by Chairman of the Republic's Government Yury Pitkevich. The parties discussed prospects for investment development of the Republic's energy system and outlined further joint actions in this area.

At the meeting the Government of the Udmurt Republic and IES-Holding signed a bilateral agreement on interaction, which defines the overall strategy and policy for development of the fuel and energy complex and social services in the Republic.

The agreement is primarily aimed at implementation of investment projects, as well as ensuring reliable and uninterrupted energy supplies for consumers and environmental safety of facilities. Such projects include reconstruction of Izhevsk HPP-1 and Sarapul HPP with construction of modern CCGT units. Mikhail Slobodin noted that his company has already begun modernizing Izhevsk HPP-1. A site for installation of the CCGT units has been prepared. The total investment is estimated at almost RUR 4 billion. The CCGT units, once launched, will bring the Republic five times as much power and twice as much heat. A concurrent project of reconstruction of Sarapul HPP is being implemented also providing for commissioning of a CCGT unit to increase the plant's capacity threefold.

In total, the investment program for the regional generating facilities will allow commissioning of almost 200 MW of additional electric power capacity and satisfy the growing industrial and households power demand.

Of similar importance is the clause in the bilateral agreement relating to cooperation in implementation of social programs. In particular, it deals with support for children's and youth sports, education and professional training in the energy industry.

Within the framework of the official meeting, Mikhail Slobodin informed the leaders of the Udmurt Republic of IES-Holding's new business model, which allows for a higher efficiency of the company's strategic asset management in power engineering. The process of formation of the new business model included establishment of Urals Generation Division comprising the generating facilities of TGC-9 and TGC-5. IES-Holding President noted that establishment of the Division will ensure integrity of the management policy and coordination of actions in further implementation of investment programs aimed at constructing and upgrading power facilities. He introduced Head of Urals Generation Division, Executive Vice President Andrey Makarov to the Republic's leaders.

Summing up the results of the meeting, Aleksandr Volkov noted the important role that the company plays in social and economic development of Udmurtia and stressed that the investor's plans in the Republic will continue to enjoy support of the regional authorities.