Enka to Build Generating Unit for OGK-4

Power generator OGK-4 said Wednesday that it selected Turkey's biggest construction company, Enka, to build a generating unit in the Perm region.

The company won an open tender to build a 400-megawatt, gas-fired unit for the Yaivinskaya power station, OGK-4 said in a statement. The equipment for the project will be provided by Siemens, OGK-4 said, without elaborating on the cost of the deal.

Enka, which renovated the White House and State Duma buildings and is currently constructing Terminal 3 at Sheremetyevo Airport, said in a statement to the Istanbul Stock Exchange that it signed a preliminary agreement to build the generator, worth 329 million euros ($508 million), Reuters reported.

The construction, part of OGK-4's investment program, is to be completed by the third quarter of 2011.

OGK-4, the parent company of the Yaivinskaya power station, is owed by German utilities giant E.ON, which bought control last year during the country's privatization of the energy sector. The station, built in 1963, is located in the Yaiva village of the Perm region and has an installed capacity of 600 megawatts.

To date, Enka has completed more than 130 projects in the Commonwealth of Independent States, ranging from hospitals and business centers to oil and gas projects, Enka said on its web site. It owns and manages 318,500 square meters of office space and 230,000 square meters of shopping malls in Russia.

The company's Moscow office was not available for comment Wednesday afternoon.