Press release

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

21 July 2009, 15:15 EEST

Fortum Corporation Press release 21.7.2009

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