| 2009-11-12 |
Published: Based on publications by RIA Novosti, Regions IA, NTA-Privolzhye |
On November 11, 2009, the Investment Council under the Governor of the Nizhni Novgorod Region made a decision to give a priority status to the project of construction of gas-vapor co-generation plant (GV CGP) in Nizhni Novgorod. It is being implemented by Verkhne-Volzhskaya Generiruyuschaya Company (VVGC), an ITERA Group company. The plant’s electric capacity will be 900 MW and that of heat power 840 Gcal/hour.
Giving a priority status to the VVGC project envisions state assistance to the investment activities of the Company in the form of property tax and profit tax benefits for seven years based on the laws of the Russian Federation and Nizhni Novgorod Region.
The total investment within the frameworks of the project would account for Rub 40.9 billion. Construction will take five years. Construction of the plant is to begin in 2010. Commissioning of the first phase generating unit is planned for early 2013, and that of the second generating unit for late 2014.
The implementation of the Project would allow for reduction of the growing deficit of energy resources and additional 350 well-paid jobs in the Region. It will also ensure significant tax revenue to the budget of the Nizhni Novgorod Region. Thus, the budgetary effect during the term of the investment agreement, including tax exemption, would be over Rub 2.2 billion. An annual tax revenue after expiration of the investment agreement and after the plant has reached its maximum planned volume of production will be about Rub 1.74 billion.
"Among the projects recently offered to the Investment Council this Project, from the viewpoint of its scale and the volume of investment, as well as the importance for the Region, is on a par with PVC production plant and creation of a catalytic cracking complex", - Valeri Shantsev, Governor of the Nizhni Novgorod Region, pointed out. He stressed that "commissioning of this facility would allow for reduced heat tariff and ensure provision of electricity both to citizens, and industrial enterprises of the Region".
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