Russia's UES signs $ 3.2 bln Krasnodar power deal

SOCHI/MOSCOW, Feb 17 (Reuters) Russian electricity monopoly Unified Energy System (UES) dollars today signed an 83.6 billion rouble (3.2 billion dollar) deal to expand the energy network in the southern region of Krasnodar over the next five years.

The agreement with the administration of Krasnodar region, where the Black Sea city of Sochi is located, will see UES invest 1.3 billion dollars in new generating capacity and a further 1.9 billion dollars in the region's electricity network by 2011.

UES said in a statement electric power consumption in Krasnodar region grew 6.3 per cent year-on-year in 2006. It is expected to grow further in the next few years.

''The agreement ... seeks to improve the reliability of electricity supply to customers and increase the network throughput capacity,'' the energy monopoly said.

It added the investment would also prevent power shortages amid surging electricity demand in the region.

The agreement was signed in Sochi, which is bidding to host the 2014 Winter Olympics, by UES Chairman Anatoly Chubais and Krasnodar Regional Governor Alexander Tkachev.

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