MOSCOW, May 23. /ITAR-TASS/. Russian power holding Inter RAO and state-owned industrial corporation Rostec are interested in implementing power projects in Crimea, Kommersant business daily reported Friday.
The companies have already held preliminary talks, Alexei Chaly, head of the Agency for Sevastopol's Strategic Development, said at the St. Petersburg International Economic Forum on Thursday.
Inter RAO expressed readiness to act as a "mandated customer", while Rostec's Technopromexport could have functions of a general contractor, one of the sources familiar with the situation told the daily.
The Energy Ministry confirmed that Inter RAO and Rostec had shown interest in building power generating facilities in Crimea, but said that it also received a number of applications from other companies. The ministry believes it is necessary to choose a company which will be responsible for power construction on the peninsula after sources of financing are determined.
Inter RAO declined to comment, while Rostec said it was not holding talks over building power generation in Crimea, which is now much dependent on power supplies from Ukraine.
Ensuring efficient power infrastructure in Crimea
In late April, the Energy Ministry approved a plan to ensure stable power supplies in Crimea with investments estimated at up to 71 billion rubles. The funds will be used for construction of 770 megawatts (MW) of gas-fired power facilities. According to Chaly, a 400-MW gas power plant will be built at the site of the Simferopol GRES plant, while the second 360-MW plant will be built depending on the project of gas grids.
The Russian government expects that private investors will take part in power generation construction on the peninsula.
Sergei Pikin, director of the Energy Development Fund, was quite pessimistic about state companies being involved in power construction in Crimea, saying that projects to build power generation under capacity supply agreements showed that state companies are not able to build cheaply and on time. These companies' participation could increase the cost of power supplies project in Crimea, he said.