Centrenergo gets UAH 0.8 bln modernization approved

Ukraine’s Cabinet of Ministers approved an UAH 810 mln reconstruction project for Centrenergo’s (CEEN UK) Power Unit #1 at the Zmiyiv Thermal Power Plant, according to a Dec. 25 resolution. The project includes upgrading its boiler and exchanging its power turbine for a more powerful one (to increase its capacity from 175 MW to 215 MW), as well as installing a new purification equipment (for UAH 239 mln).

Alexander Paraschiy: The Cabinet resolution allows Centrenergo to apply for a special markup to its electricity rates to compensate partially project costs. That should allow the utility to generate about UAH 0.5 bln in additional revenue at the cost of power consumers over the next four to six years, which will allow Centrenergo to increase its annual EBITDA by about UAH 0.1 bln (UAH 0.3/share) in each of the years 2014–2019.