Vladimir Babyak, General director of CJSC Intertechelectro, made report in State Duma Energy Committee

10 December 2010

The meeting touched upon implementation process of the target program «Modernization of public heat supply systems in the Kurgan region in 2010-2015».

Oleg Bogomolov, Governor of the Kurgan region, made a report on this question. Vladimir Babyak, General director of CJSC Intertechelectro, spoke on implementation of the Kurgan HPP-2 construction project based on private-public partnership.

The modernization program was developed under execution of the private-public partnership in power sector on recommendation of Vnesheconombank.The document was adopted to increase reliability and efficiency of the Kurgan region public heat supply systems and includes investment projects on all of 24 regional districts as well as towns of Kurgan and Shadrinsk. The final result is aimed at improvement of housing and utilities infrastructure for the region customers.

The first project step is a mini-HPP construction based on the existing boiler house of the Kurgan wheel-tyre tractor plant. The very necessity of a new generation facility construction is conditioned by the fact that the boiler house doesn’t maintain properly hydraulic control of the wheel-tyre tractor plant housing area. The project will be executed by the Modern utilities’ systems company. The boiler house first step design will be performed by LLC Engineering and Design Center of New Generation, the company that designed the Kurgan HPP-2.

To the State Duma members Vladimir Babyak presented the Kurgan HPP-2 construction project financial model that is a successful example of practical implementation of the private-public partnership principles. The power plant building is credited by Czech export bank, power distribuition scheme is put up on the means of the Kurgan region government investment fund and budget. Upon construction termination the facility will be owned by the region. The meeting involved an offer to review a possibility of similar financing of the public heat supply systems’ modernization program with Vnesheconombank participating. After the speech Vladimir Babyak answered the deputies’ questions.