OGK-5 POWER PLANT MODERNISATION

Upgrade of the Nevinnomyssk GRES power plant in Southern Russia, including the rehabilitation of existing generating capacity and building of a modern, efficient Combined Cycle Gas Turbine (CCGT) unit to replace two old gas-fired steam units.

The project aims to increase energy efficiency and to promote the differentiation of energy supply as well as operational safety of the energy infrastructure.

Due to its size and technical characteristics, the project requires an Environmental Impact Assessment (EIA) under EIB guidelines. The EIA process has been initiated and its review will form part of the Bank's appraisal of the project. The project is expected to contribute to meeting growing electricity demand with a lower environmental impact than other fossil fuel based alternatives.

The rehabilitation component of the project is expected to be procured under a number of separate works, supply and services contracts using mainly international tendering procedures. The new CCGT plant will be procured under a single Engineering, Procurement and Construction (EPC) contract. CCGT plant procurement has been initiated by OGK-5 under RAO UES public procurement practices, and the procurement has been completed after privatisation of the company.