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TOKYO, October 18 (Itar-Tass) - Japan’s Itochu Corporation is about to make a decision on its involvement in modernisation of the Avtozavodsk heat and power plant in Nizhny Novgorod, the company said on Friday.
The company expects an official agreement to be signed shortly. The deal’s pricew is 55 billion yens ($561 million). Japan’s bank consortium will allocated a loan to cover three quarters of the money, Itochu said. the contract will be the biggest one in the history of cooperation between Japanese companies and the Russian side in heat and power energy.
The project includes construction of a new energy block of 400 mega watts. The work on the energy block will feature Toyo Engineering and Mitsubishi Heavy Industries. The latter will supply a steam-gas energy unit and will service it later on.
Russia’s EN+ Group and Japan’s Itochu signed a memorandum on the project in last November. The energy block’s construction is due to begin in 2014 to be completed by 2016.