HELSINKI Dec 23 Finnish grid operator Fingrid said on Thursday it and Estonia's Elering have picked Nexans Norway and Siemens (SIEGn.DE) as contractors to build a new cable fron Estonia to Finland.
The new subsea 650 megawatt Estlink 2 cable is estimated to start operating in early 2014 and it will almost triple the electricity transmission capacity between the countries to 1,000 megawatts.
Fingrid said Nexans Norway would lay the cable and Siemens would build converter substations in Finland and Estonia.
The project is estimated to cost 320 million euros ($420.3 million) and the European Union will provide 100 million euros.
"The planning of all building work and the type tests of the cable will be launched next. The building work within the project will be completed in stages so that the cable will be laid at the bottom of the sea in the summer of 2013," said Fingrid Chief Executive Jukka Ruusunen in a statement. ($1=.7613 EURO) (Reporting by Terhi Kinnunen)