Daily analyst comments
TGK-11 to speed up implementation of its investment program
07.10.09 11:14
The accelerated construction of a host of generation assets, which awaits TGK-11 management in the aftermath of the accident at the Sayano-Shushenskaya HPP, may have a negative impact on the viability of the relevant investment projects due to the anticipated low utilization of newly-installed capacity.
TGK-11 management expects the genco’s investment program to be revised before 2015, with assistance from Inter RAO UES, Interfax cited TGK-11 general director Sergei Kozhemyako. The revision is likely to push for accelerated construction of new capacity. The accident at the Sayano-Shushenskaya HPP is one of the factors behind the program revision, scheduled to be completed before the end of 2009.
TGK-11 estimates its investment program for 2007-2015 at RUB 24 billion. The program specifically entails capacity buildup at cogeneration power plants 3 and 5 (TETs-3 and TETs-5) in Omsk, and at State District Power Plant No. 2 (GRES-2) and TETs-3 in Tomsk. The program also envisions the opening of the Omsk-based TETs-6 in 2012. However, TGK-11 management in July suggested indefinitely delaying its construction. We believe that accelerated construction may lead to a low load on newly-built capacity, which may negatively impact the commercial viability of the relevant investment projects.