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. Last Updated: 07/27/2016

UES Looking For $3.5Bln

National power monopoly UES will start holding tenders next year to attract up to $3.5 billion in private funds to build new plants by 2008, when demand is expected to outstrip supply, deputy CEO Sergei Dubinin said Thursday.

The state-controlled giant needs to add as much as 5,000 megawatts of generation capacity -- mainly in the northwest, central and Urals regions -- at a cost of between $650 to $700 per kilowatt, Dubinin said. UES currently has a capacity to generate 156,600 megawatts annually, after adding 379 megawatts this year and 1,300 megawatts last year.

Dubinin said UES expects the state to approve mechanisms by the end of the year that will guarantee a positive return for investors. "This plan will allow us to provide new power capacity without using budget funds," he said.

UES also plans to spend 18.9 billion rubles ($657 million) of its own funds in 2005 and 29.6 billion rubles in 2006 to boost capacity.

(Bloomberg, Prime-Tass, MT)