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Verbund and Salzburg AG to construct new Salzach power plant

23 August 2006 - The boards of Austrian utilities Verbund and Salzburg AG have agreed to construct the new 76.5 MW Salzach hydropower plant at Werfen/Pfarrwerfen in joint venture.

The plant will serve the Salzburg region and is due to be completed in 2009 at a cost of €63.5m ($81.3m).

"This fifth power plant on the central Salzach will represent a significant contribution to the security of supply of electricity for the entire region. On average, 22 000 households will be supplied with electricity; this is a tenth of all households in the federal province of Salzburg," Dr. Arno Gasteiger, Spokesman of the Managing Board of Salzburg AG, stated today in Vienna.

"In order to be able to continue covering electricity demands especially in peak times in the future and to keep electricity imports as low as possible, it is important to open up new domestic sources of energy," added Herbert Schröfelbauer, Chairman of the Managing Board of AHP.

"Werfen/Pfarrwerfen will be constructed as a modern run-of-river power plant with two high-output pipe turbines; the entire plant will, upon completion, be harmonically integrated into the environment," Michael Amerer, Managing Director of AHP, commented.

_For the implementation of the project in agreement with the population of Werfen and Pfarrfwerfen, a citizens' advisory committee will be established consisting of representatives of the residents, communities, as well as tourist and economic businesses, which, it is hoped by those responsible for implementing the project, will be based upon open dialogue.

The Werfen/Pfarrwerfen power plant is an optimal addition to the existing power plants of St. Johann, Urreiting, Bischofshofen and Kreuzbergmaut, situated along the central Salzach. All five power plants together will be generating 375 million kWh of electricity, which is enough to supply just about half of all households in the federal province of Salzburg.




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