OREANDA-NEWS. July 30, 2009. OGK-2 could lose over RUB 20 bn and be fined for the failure to fulfill its investment program, the Audit Chamber believes. Since the beginning of the year the genco has clashed with its two general contractors – E4 Group and Quartz-New Technologies. The Audit Chamber has probed the conflicts. 98% of financial resources (RUB 20.3 bn) of RUB 20.8 bn which OGK-2 has spent since 2007 to finance its investment projects, went towards building new power units at Troitskaya GRES, with Quartz-New Technologies being the general contractor, and Stavropolskaya GRES with E4 Group.

OGK-2 now faces the risk of losing these resources, auditors believe. Quartz-New Technologies did not undertake to provide a bank guarantee to return advance payment for the equipment and it was the biggest payment of RUB 11.14 bn, the report says. At present, OGK-2 proposes revising the investment program for Troitskaya GRES and building a single unit instead of two 660 MW units.

However, it would be problematic to have an advance payment repaid in the event of refusal to purchase the equipment. “The risks are minimum”, Denis Fedorov, CEO of Gazpromenergoholding, which runs OGK-2, is confident. According to him, the main terms for amending the agreement with the contractor have been agreed and the parties expect the decision of the Ministry of Energy to adjust the terms of the capacity agreement.