OREANDA-NEWS. September 17, 2010. The Cabinet of Ministers of Ukraine approved technical documentation for the modernization of power unit #1 at Zaporizhya TPP, part of Dniproenergo (UX: DNEN UK), Interfax reported yesterday. Total CapEx will amount to UAH 427 mln (USD 53.7 mln). Expected efficiency improvements were not disclosed.

Concorde Capital: all modernization projects approved by government are usually approved by National Electricity Regulatory Commission afterward, which means up to 80% of the CapEx will be additionally included in Dniproenergo’s tariffs. Though details on expected efficiency improvements were not provided, the payback period is usually 2-3 years, given that we expect 4/5 of the CapEx to be provided through an investment surcharge included in its tariffs.