OJSC “Territorial Generating Company #9” leased block heat networks and heat points of Gubakha. It is planned that the consolidation of the central source of heat and heat networks under the single control, the investments’ increase in repair works; implementation of the investment program will permit to make the heat supply system of the city more reliable and effective.

The lease contract between OJSC TGC-9 and MUE “Gubakha Heat Networks” is concluded for a 49 years period. OJSC TGC-9 obtained the right to lease heat networks of Gubakha on the results of the competition. The Company got a license for execution of the contract from the Federal Antimonopoly Service.

Block heat networks are handed over for lease to TGC-9 in order to solve a number of urgent problems of the heat supply system of Gubakha; first of all to solve the problem of poor technological condition of the heat networks infrastructure (high heat power waste by the transportation, high wear rate).

The municipal enterprise managed the block heat networks of Gubakha hasn’t got enough resources to service the communications effectively. TGC-9 is going to invest sizeable funds and has already worked out the repair works program and investment program project aimed at optimizing the heat supply system.

Besides, the consolidation of the key heat energy producer (Kizel SDPP-3 – TGC-9 branch) and the backbone and block heat networks under the supervision of TGC-9 for the needs of the city will make it possible to create the integrated heat power supply chain – from the producer to the ultimate consumer. Owing to such a consolidation it is planned to optimize the hydraulic regimes and finally increase the reliability of the heat delivery to the consumers.

At present, right after handing over of the block heat networks, TGC-9 is planning to start preparing heat networks of Gubakha for the autumn and winter period of 2007-2008. TGC-9 is planning to invest about 15 million rubles in repair works, what is several times more the amount of financing that could be provided for by the municipal enterprise. During the preparation for the work in winter conditions the pressurization and the inspection of all central heat points (CHP) will be carried out, about 800m of heat networks and 3 service lines in CHP will be replaced and the insulation will be reconstructed. The operating personnel of MUE Gubakha Heat Networks (95 people) that provided for the operation of block heat networks before the municipal enterprise handed over to TGC-9 will work in TGC-9.