Moscow. 5 October 2004. Today in the city of Kaliningrad, the Chairman of the Management Board of RAO "UES of Russia" Anatoly Chubais and the Kaliningrad Region Governor Vladimir Yegorov have signed an Agreement on Cooperation in the implementation of the project to build a heating main linking Kaliningradskaya CHPP-2 and the southern part of Kaliningrad. The Agreement has also been signed by the Kaliningrad Mayor Yuri Savenko and the Chairman of the Management Board of OAO "Bank for Foreign Trade" (Vneshtorgbank) Andrey Kostin.

The document just signed outlines the main areas of cooperation among the parties in the construction of the heating main from Kaliningradskaya CHPP-2 to the southern part of Kaliningrad.

The heating main will deliver the 340 Gcal/h of heat generated by the first unit of Kaliningradskaya CHPP-2. This will help create a system ensuring reliable and uninterrupted heating of the southern part of the city, and raise the fuel efficiency of the power plant to 76% from 51%. The project is scheduled for completion in 2007. It includes the construction of the heating main and modernization of the heating facilities and networks owned by the Kaliningrad city authorities.

Under the Agreement, the Kaliningrad Region Administration will render assistance in providing plots of land needed for the construction of the heating main, and in establishing economically sound heating tariffs. The Kaliningrad city authorities will also assist in the provision of plots of land, and, together with the Kaliningrad Region Administration, will ensure that the necessary contractual arrangements are made for the purchase of heat produced at Kaliningradskaya CHPP-2.

In its turn, RAO "UES of Russia" will turn the heating main construction into an individual project being implemented separately from the construction of Kaliningradskaya CHPP-2, and ensure that the first generating unit of the power plant is put into operation not later than the heating main is commissioned.

Vneshtorgbank will provide assistance in raising investment funds to finance the construction of the heating main.

Under the Agreement, the Parties will establish a business company which will take up the construction and operation of the heating main.

The Agreement emphasizes that the Parties will join forces to ensure fuel supply to Kaliningradskaya CHPP-2, taking into account the heating load of the power plant. Besides, the document states the need for a coordinated tariff policy, which will ensure the project payback and timely repayment of investments.

During his stay in Kaliningrad, the Chairman of the Management Board of RAO "UES of Russia" Anatoly Chubais also visited the construction site of Kaliningradskaya CHPP-2 and held a meeting of the power plant construction committee. The first power generating unit of Kaliningradskaya CHPP-2 is scheduled for commissioning on 1 November 2005.