On February 24, OJSC TGC-6 (managed by IES-Holding) and CJSC Hydromash-Group signed an agreement for TGC-6 to sell the Kuznetsk CHP-3 to Hydromash-Group, according to IES-Holding's press service.
The transaction was approved by the Board of Directors of TGC-6 on February 7, 2014. The decision to sell the power plant was based on the heat supply scheme validated by the city authorities of Kuznetsk in October 2013. The scheme assumes the transfer of heat consumption in three districts of the city (South, Southwest and West) from the Kuznetsk CHP-3 to individual heat generators. This decision was motivated by the remoteness of these districts from the power plant resulting in high operating cost of heat power transfer.
"Considering a number of options, we grew aware of the sale of Kuznetsk CHP-3's property complex as the best solution for the company. This transaction fits well into our cost reduction and efficiency improvement strategy. The proceeds from the sale will be used to implement the priority investment program," said Boris Vainzikher, CEO of IES-Holding.
Under the terms of agreement, the heat supply to the plant consumers will not be discontinued. The sale of the asset is expected to be finalized in April 2014 upon completion of all the appropriate procedures.
The Kuznetsk CHP-3 located in Kuznetsk city of Penza region was put into operation in 1933. Its installed capacity is 4 MW, 201 Gcal/h.
IES-Holding (Integrated Energy Systems, Russian: Kompleksniye Energeticheskiye Sistemy) is a leading Russian private company in the sphere of electric power industry and gas distribution established in 2002. It is basically engaged in power generation, trading and retail activities. The Holding's strategic assets are: TGC-5, TGC-6, TGC-7, TGC-9, a number of regional power supply companies as well as GAZEKS engaged in gas distribution and supply to Russia and Ukraine. The total installed electric power of the territorial generating company where IES Holding is a strategic shareholder amounts to 15,767 MW, the thermal power is 67,799 Gcal.
In 2013, IES-Holding's generating companies reduced electricity production by 3.2% to 56.544 billion kWh from 58.423 billion kWh the year before.