OREANDA-NEWS. The Nizhniy Novgorod Region Government and RAO "UES of Russia" have signed an Agreement on Cooperation in implementing priority capital investment projects to build and refurbish electric power facilities in the Nizhniy Novgorod Energy System for the period until 2012.

Under the Agreement, projects will be implemented to build and upgrade about 820 MW of generating capacity, 700 MVA of transformer capacity and 335 km of transmission lines in the bulk power grids, and 1,622 MVA of transformer capacity and 197.5 km of lines in the regional distribution system, both through new construction and upgrade of the existing substations of different voltage classes.

The overall cost of the projects to be implemented under the Agreement is estimated at over RUB22 billion, of which RUB3 billion will be used to expand generation capacity and RUB19 billion will be invested in power grid facilities.

The projects will be financed with own resources and borrowings of the Company's generating and grid companies operating in the Nizhniy Novgorod Region, appropriations from the federal and regional budgets. Most of the investment projects in the distribution grids will be financed from charges for technological connection to power grids.