6 September 2011
The Cabinet of Ministers, in a decree issued on August 31, increased the budgeted value for renovating power unit #7 at Zakhidenergo’s (UX: ZAEN UK, HOLD) Burshtin Thermal Power Plant from UAH 157.1 mln to UAH 420.8 mln, Interfax reported yesterday. After modernization, the unit’s total capacity will reach 206 MWt, fuel consumption will decrease by 3-7 g/kW and electricity output will reach 1.019 TW per annum. Yegor Samusenko: The revised budget will allow Zakhidenergo to claim an additional USD 22-26 mln in reimbursements from the electricity sector regulator over five years (~4x of 2011E net income and ~1x of 2012E), as 70%-80% of the approved investment project should be paid back through the investment surcharge mechanism.