With the reserve price set at RUB24.658 billion ($950 million) the auction price was nearly 60% higher at RUB39.2 billion ($1.51 billion). WGC-5 comprises the thermal power plants at Konakovskaya, Nevinnomysskaya, Sredneuralskaya, and Reftinskaya with a total installed capacity of 8,672 MW.

Meanwhile, WGC-5 has selected an E4 Group-led consortium to build a new 410 MW combined-cycle gas turbine at the Nevinnomysskaya. The consortium also includes Tsentroenergomontazh, SibKOTES, Power Machines, Novosibirskenergospetsremont, and Energostroysnabkomplekt-Invest. Under the contract, the work must be completed within about three years.

In autumn 2006, WGC-5 raised $459 million, or RUB12.1 billion, through a public offering of 5.1 billion shares, about 14.1% of the capital.

The public auction was arranged by Alfa-Bank with Merrill Lynch International acting as the seller’s financial advisors. Proceeds from the sale of shareholding will be used by UES to finance the investment programmes of UES FGC and Hydro WGC.

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