RusHydro, RAO ES of the East and EBRD signed the agreement on construction of the Vostochnaya gas-fired power plant
JSC RusHydro (ticker symbols: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces that it has signed the guarantee agreement with European Bank for Reconstruction and Development (EBRD) on construction of the Vostochnaya TPP in Vladivostok on December 5, 2012. The document was signed by Evgeny Dod, Chairman of the Management Board of RusHydro, and Varel Freeman, the First Vice President of EBRD.
Sergey Tolstoguzov, General Director of RAO ES of East (subsidiary of RusHydro), and Varel Freeman signed the 12-year loan agreement in the amount of RUR 4 bn aimed to finance the construction of the Vostochnaya gas-fired power plant and refinance the existing debt of RAO ES of East.
Evgeny Dod commented: “RusHydro is actively building power plants in the Far East. The Vostochnaya project implemented in cooperation with EBRD is one of the most significant projects in the region. We entered the new stage of energy development in the Far East which will enable to increase energy reliability and safety in the region and provide for reliability of energy supply to all consumers.”
Varel Freeman said: “This loan agreement will be an important tool in implementation of program of conversion of the Far East capacities from coal to gas. New power plant will be energy efficient and enable to reduce the amount of greenhouse gases emissions, as compared to coal capacities, and help to decrease the level of air pollution in Vladivostok.”
RAO ES of East investment program for 2012-2014 provides for outlays of RUR 10.2 bn for the project.
The construction of the power plant started in July 2012 in Vladivostok. The total electric capacity of the Vostochnaya plant will be 139 MW, thermal capacity – 420 Gcal/h.
RusHydro’s strategy of energy development in the Far East includes the replacement of economically inefficient capacities with effective power generation through incorporation of hydro and thermal generation; signing direct contracts with consumers of both existing and generation assets under construction; realization of electricity export opportunities to neighboring countries and implementation of investment projects using public-private partnership tools and project financing.
The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to RusHydro and its operations.
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