HEP and the Russian company Technopromexport, Moscow, signed a contract on Thursday, May 31, at HEP’s headquarters in Zagreb, for the supply of equipment and services for the construction of Unit C of Sisak TPP.
In the presence of members of HEP Management Board and representatives of the Russian Embassy in Zagreb, on behalf of HEP the contract was signed by President of HEP Management Board, Ivan Mravak and Director of HEP Proizvodnja d.o.o. Željko Dorić, and on behalf of Technopromexport Moscow, the company which brings together Russia’s leading energy equipment manufacturers, by General Director, Sergey Molozhavy and Regional Director for Europe, Valeriy Kuznetsov.
The value of the contract is USD 177.6 million, contractual construction period is 45 months from the contract effective date, anticipated to last from September 1, 2007 to May 31, 2011 when the new unit is planned to go into commercial operation. The construction of Unit C will be co-financed in the amount of USD 105 million by settling the clearing debt of the former USSR to the former SFRY, now the debt of Russian Federation to the Republic of Croatia, through supply of main energy equipment in that amount. For the remaining 72.6 million euros HEP d.d. will raise a loan. I. Mravak at this occasion expressed his satisfaction that the best solution in good business spirit had been found after two years of negotiations, stressing that HEP already had experience with Russian technology in Sisak TPP. He thanked everybody involved in bringing the contract to fruition, which will result in HEP’s new capacity of 230 Mwe/50MWt at Sisak.
Sergey Molozhavy also expressed his satisfaction over today’s signing of the contract and thanked everybody, and, regarding the equipment, he pointed out that all of their equipment, including turbines, are made under Siemens license. He announced the visit of Russian President Vladimir Putin to Croatia in June, whom he will try to inform of the successful conclusion of the negotiations with HEP, ended with this contract.
