17.06.2011
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RusHydro and Voith Hydro Agreed to Cooperate

JSC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces that RusHydro and Voith Hydro (Austria) signed a package of cooperation documents at the 5th St. Petersburg International Economic Forum.


First, Mr. Evgeny Dod, Chairman of the Management Board of RusHydro, and Dr. Leopold Henninger, President and General Director of Voith Hydro, signed an agreement on strategic cooperation.


The agreement defines the main cooperation principles in the sphere of hydropower engineering. The parties plan to consider overall modernization of the Saratovskaya hydropower plant equipment, the manufacture and supply of equipment for modernizing the Miatlinskaya hydropower plant, followed by project development, model tests and personnel training and the consideration of the possibility of establishing a joint venture (JV) to produce hydropower equipment on Russian territory, as upcoming cooperation trends. It is expected that total investment within the framework of the agreement will amount to more than EUR 1 bln.


The study of possibilities and principles for JV establishment on Russian territory is given in detail in the second signed agreement. According to the document, the JV will focus on manufacturing hydropower equipment. The plant commissioning is scheduled for 2013-2014.


The transaction for the JV is based on an offset mechanism. Due to share participation in the joint venture, Voith Hydro will make investments and submit available research and modern technologies.


The JV should become a center for innovations, which then will become a starting point for creating an R&D center.


The JV agreement will be effective after necessary corporate procedures, including the approval of the Board of Directors.


In September 2010, RusHydro and Voith Hydro signed a memorandum of cooperation, aimed at collaborating on reconstruction, modernization and the technical re-equipment of existing hydro-power plants. One item will be the cooperative development of technical and commercial terms for a long-term agreement on supplying equipment for hydro-power plants. Within the framework of cooperation, the focus will be on environmentally sound and fish-friendly technologies.


Voith Hydro GmbH & Co.KG Company is a supplier of eco-friendly hydropower equipment and a world leader in designing and constructing hydropower plants. The Company offers integrated solutions for the turn-key installation of hydro-mechanical, turbine and generator equipment, auxiliary mechanical and electric systems, control systems, modernization and re-equipment services and providing the in-house manufacture of the main types of HPP equipment. Voith Hydro Company designs hydro-power turbines that completely eliminate machine oil ingress to water. At present, RusHydro and Voith Hydro are implementing joint projects at the Zaramagskaya HPP, the Uglichskaya HPP and other HPPs.





The information in this press release may contain estimated figures or projections, or other forward-looking statements relating to future events or future economic and financial activities of JSC RusHydro and/or its affiliated and subsidiary companies. Certain declarations bear solely estimative or prognostic character, and actual events or results may substantially differ from them. JSC RusHydro undertakes no obligation to revise these declarations to render them correlated with actual events and circumstances which might occur after the date of this communication, neither to reflect on any events whose occurrence at the present moment is not reasonably expected.



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