Zakhidenergo announces its ambitious reconstruction plans
6 June 2008
Zakhidenergo (ZAEN: HOLD) plans to resume construction of the second stage at Dobrotvir TPP in 2010, the company’s Deputy General Director Ihor Sypa said yesterday. Construction of 225 MW power unit #9 (stopped after the collapse of the USSR) will cost USD 204 mln (or about USD 900/kW) and take 2-3 years. In addition, the company is going to fully reconstruct four units (#1 to #4) at Burshtyn TPP by 2010: estimated cost per unit is USD 280 mln (or USD 1300/kW). The company’s plans for the near future: reconstruction of Burshtyn unit #7 (already started, estimated cost: USD 31 mln or USD 160/kW), and Burstyn unit #5 (scheduled for 2008-2009, estimated cost: USD 77 mln or USD 390/kW). Alexander Paraschiy: We believe realization of projects for 2008 and 2009 will be completed on time, while realization of more costly projects scheduled for 2010 and later can be postponed. Over the last couple of years, Zakhidenergo has been trying to find financing to resume construction of the second stage at Dobrotvir; commissioning of unit #9 had been previously planned for 2009-2010.
