OREANDA-NEWS. February 11, 2010. The turnkey modernization of four generation units at the Volga HPP could permit Power Machines to expand its order portfolio by about 3%. If the project is successfully fulfilled, Power Machines could be awarded an order for the replacement of the power plant’s ten other outdated turbines.

On February 10, Power Machines reported that it had signed a contract to renovate four turbine generators at RusHydro’s Volga hydro-power plant in the town of Volzhskiy, Volgograd Region, on turnkey terms. In line with the terms of the contract, Power Machines is to design and assemble four water turbines of 145 MW each. In addition, the company will assist in the removal of the old turbine units and the installation, tuning, tests and launch of the new ones. The company has not disclosed the exact contractual price. RusHydro plans to invest RUB 10 billion, or USD 330 million in the reconstruction of the Volga HPP by 2020.

We are upbeat on Power Machines’ new contract with RusHydro. If the project is successfully fulfilled, Power Machines could be awarded an order for the replacement of the power plants’ other outmoded turbines. So far, RusHydro has replaced 8 out of the 22 hydraulic sets at the Volga HPP. Therefore, after 2013, Power Machines could win an order for the manufacture of ten more turbines for the Volga HPP. Though the contractual price has not yet been disclosed, we estimate it at around USD 100 million. The contract is set to be completed by 2013 and should ensure Power Machines a 3% expansion in its order portfolio.