Fortum has selected contractor for construction works at its Nyagan greenfield project in Russia

Fortum has selected contractor for construction works at its Nyagan greenfield project in Russia Fortum has selected the Russian engineering company E4 Group as contractor for construction works at its Nyagan greenfield project in Siberia. The scope of the contract includes all construction works of the project as well as auxiliary systems and external infrastructure. The value of the contract is approximately RUB 13 billion (approximately EUR 300 million with the current exchange rate). In August 2008, E4 Group won the tender for delivery, installation and commissioning of main systems and equipment for the Nyagan power plant. The Nyagan condensing power plant is being built close to the town of Nyagan in Khanty-Mansisk Autonomous Area in western Siberia. It will supply power for the needs of oil and gas industry in the area. Once completed, the power plant comprises three gas-fired units that each have a power production capacity of 420 MW. The new plant's turbines and generators will be manufactured by Siemens. Currently, the construction site is ready for the beginning of works that are scheduled to start this summer. Up to 3,000 persons will be involved into construction works at the site. The first unit is scheduled to be ready for production by the end of 2011. The Nyagan project is the largest project in Fortum's Russian investment program. The total estimated value of the investment is approximately EUR 1.4 billion. It is financed with funds attracted during OAO Fortum's additional share issue held in March 2008 and with bonded debts and bank loans. OAO Fortum is the Russian subsidiary of Fortum Corporation operating in the Urals and western Siberia regions of Russia. The total installed capacity of the company and its affiliates approximately 3,000 MW of power and approximately 15,800 MW of heat. OAO Fortum's ongoing investment program will increase its power capacity up to approximately 5,300 MW. The value for the remaining part of the programme, calculated at year-end 2008 exchange rates, is estimated to be EUR 2.0 billion from January 2009 onwards. E4 Group is one of the leading Russian engineering companies specialising in power and heat and other industrial constructions. The company employs over 20,000 persons. Fortum Corporation Corporate Communications