Authorities in Russia's North Caucasus will modernize major electric power facilities and construct several new facilities in the region by 2016 as part of their ambitious plans aimed at improving regional economy, the Russian national electricity operator said.

A total of 29 large electric power facilities will be constructed or modernized within the next four and half years, including 13 electrical substations and 16 electricity lines, the Federal Grid Company said in a statement. A total of 1.7 kilometers (1 mile) of new electricity lines will be constructed.

The announced modernization is part of a larger electricity development program in the North Caucasus Federal District, which is intended to boost industrial production in the region and create about 30,000 new jobs.

High unemployment coupled with low living standards are thought to be the main factors driving residents of the North Caucasus to join militant groups. The Russian government has moved to develop regional economy and attract investments to the North Caucasus as part of its fight against terrorism in the region.

About 40 major investment projects worth 400 billion rubles ($13.4 billion) are planned to be implemented in the North Caucasus this year.