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UPDATE - Rehab deal signed for 94-MW Lesogorskaya, 70.5-MW Svetogorskaya

Russia's Power Machines and regional utility Territorial Generation Co. No. 1 (TGC-1) said May 10 they signed a 5.5 billion ruble deal (US$214 million) to refurbish two hydroelectric projects on northwest Russia's Vuoksa River.

Power Machines is to replace four turbine-generators at the 94-MW Lesogorskaya (HPP-10) hydroelectric plant, increasing project capacity to 122 MW. The contract also includes replacement of three turbine-generators at the 70.5-MW Svetogorskaya (HPP-11) hydroelectric plant, increasing project capacity to 88.5 MW. The work is to be completed by the end of 2012.

Power Machines previously reported its shareholders approved the �interested party transaction.� (HNN 4/26/07) TGC-1 is controlled by Russian utility monopoly Unified Energy Systems, which also owns a stake in Power Machines.

TGC-1 has installed capacity of 6,248.2 MW and serves the city of St. Petersburg, Karelia Republic, Leningrad Region, and Murmansk Region.

Lesogorskaya and Svetogorskaya produce 631 million kWh and 614 million kWh annually, exporting much of their power to Finland.

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