Power Machines OJSC starts to implement the the second phase of Blagoveshchenskaya TPP construction project

Power Machines OJSC has started to manufacture equipment and carry out preparatory stage works of at the plant’s site.

The second phase of Blagoveshchenskaya TPP construction is one of the four projects funded under RusHydro OJSC investment program for the construction of new thermal power facilities. The projects are undertaken jointly with RAO Energy System of the East JSC pursuant to a Decree of the Russian Federation President concerning the power industry development in the Far East.

In December 2013 Power Machines OJSC and Blagoveshchenskaya TPP CJSC (subsidiary of RusHydro OJSC) signed a contract to provide turn-key general contractor services during the second phase of Blagoveshchenskaya TPP construction. 

The Power Machines OJSC power engineering company won an open two-stage competitive tender to select the general contractor to increase the capacity of Blagoveshchenskaya TPP with a price offer amounted to 7.316 billion rubles (including VAT). During negotiations preceding the contract award the contract value was lowered to 7,198 billion rubles (including VAT).

According to the contract terms Power Machines as a general contractor are to take part in the second phase of Blagoveshchenskaya TPP construction, which comprises installation and construction, commissioning and startup works, as well as manufacture and supply of all necessary equipment, including the main power generating equipment: a 120 MW steam turbine complete with a turbogenerator produced by the Company, a coal-fired steam boiler manufactured by the Taganrog Boiler-Making Works Krasny Kotelshchik (member of Power Machines OJSC), as well as power and unit transformers to be produced by Power Machines – Toshiba High-Voltage Transformers LLC (joint venture of Power Machines and Toshiba Corporation). The project is to be completed in December 2015.

When the second phase of construction is finished the electric power capacity of Blagoveshchenskaya TPP will increase by 120 MW and amount to 400 MW and its thermal power capacity will rise by 188 GCal/h up to 1005 GCal/h. Coal from the Erkovetsky open-cut (Amur Region) is to be used as fuel to produce electric and thermal power. The project implementation will satisfy the growing demand for thermal power in the Amur region, increase the efficiency and reliability of the heat supply system by replacing retired capacities of unprofitable boilers in Blagoveshchensk.

The customer developer of the project for the construction of the largest heat generating plant in the Amur region is Blagoveshchenskaya TPP JSC (100% subsidiary/associated company of RusHydro OJSC). RAO Energy System of the East (member of RusHydro Group) provides the integrated management of all RusHydro OJSC subsidiaries/associated companies (customer developers) created specially to build heat generation facilities in the Far East.