OREANDA-NEWS. The Kurgan Region Government and RAO "UES of Russia" have entered into an Agreement on interaction in implementing investment projects to construct and upgrade the power facilities in the Kurgan Region until 2011.

The Agreement is designed to ensure reliable electricity supply to customers, increase the network throughput capacity, create the conditions for new user connections to the power grids and increase the capacity available for users already connected, prevent power shortages amid growing electricity consumption in the region's energy system.

The Agreement envisages a well-balanced development of the region's generation capacity, grid facilities, and dispatch infrastructure. In particular, it includes investment projects to build and modernize 450 MW of generating capacity, construct substations of different voltage levels with the total transformer capacity of 980 MVA, and substations with 200 MVA of transformer capacity in the region's distribution networks.

The amount of funds needed to finance the capital investment projects under the Agreement is estimated at over RUB19.1 billion, of which RUB12 billion will be used to expand generation capacity and over RUB7.1 billion will be invested in the power grid infrastructure.