The tender to build the power plant was won by a consortium of Enel and ESN Energo. Enel ESN Energo, in which Enel (Italy) and ESN (Russia) each have 50 percent, is registered in Russia. It will be responsible for the routine management of the North West Thermal Power Plant, and will supervise the construction of the second unit of the power plant and a steam pipeline. The company will also be responsible for fundraising. According to the agreement, the managing company will not be able to sell the power plant within 5 years after the signing of the contract.

The Board of Directors of RAO UES approved the main criteria for the tender back in September 2003. International power companies operating in various countries were required to have a turnover of at least $5bn and have at least 5,000 MW of power assets in ownership or management. In addition, they were required to have a credit rating of no less than BBB- (S&P and Fitch) and Baa3 (Moody’s).

North West Thermal Power Plant's design capacity is 1,800 MW. According to the economic feasibility study, the project will require investments of more than $220m for the construction of the second power unit with a capacity of 450 MW. The main shareholders in ZAO North West Thermal Power Plant are RAO UES (46.67 percent), OAO Lenenergo (13.8 percent), Lentransgaz (12.3 percent), the St. Petersburg State Property Management Committee (7.5 percent) and the state-run company Technopromexport (3.7 percent).

Commenting on the meeting of the Board of Directors on June 25, Mr. Chubais said the company’s management was ready to help the government decide on the creation of wholesale power generating companies. He expressed disappointment over Russian Prime Minister Mikhail Fradkov’s statement that the decision was postponed until December 2.

At the same time, Mr. Chubais said RAO UES’s management realized that the reform of the electricity sector in Russia required support for the government. “We are convinced like never before that the electricity reform is absolutely necessary, and it gives us grounds for a quiet, serious and argumentative talk with the government,” he stressed.