RusHydro signed guarantee agreement with European Investment Bank under the loan for construction of the Vostochnaya TPP
JSC RusHydro (MICEX-RTS, LSE: HYDR; OTCQX: RSHYY), announces that it has signed a guarantee agreement with European Investment Bank (EIB) under the 12-year loan facility in amount of RUB 4 billion provided to RAO ES of East (subsidiary of RusHydro) earmarked to finance the construction of the Vostochnaya TPP in Vladivostok.
Konstantin Bessmertniy, Member of the Management Board of JSC RusHydro: “Now RusHydro unwraps a large-scale construction in the Far East. Construction of the new generation will enhance energy safety of the region and ensure reliable power supply to consumers. The support of our projects by major financial institutions, such as European Investment Bank, is an obvious advantage and an important security for the successful implementation of RusHydro investment plans”.
“This loan will contribute to climate change mitigation, which is a key priority for the European Union and therefore also one of the key operational priorities of the EIB,” said Wilhelm Molterer, EIB Vice-President responsible for lending operations in Russia, adding that the project also contributes to the implementation of the EU – Russia Partnership for Modernisation.
The guarantee agreement between the Company and European Investment Bank was approved by the Board of Directors of RusHydro in November 2012.
RAO ES of East investment program for 2012-2014 provides for financing of the construction of TPP in total amount of RUR 10.2 bn. The total electric capacity of the Vostochnaya TPP will be 139 MW, thermal capacity – 420 Gcal/h.
Sergei Tolstoguzov, General Director of JSC "Energy Systems of East": "Today the south of Primorye region faces lack of energy. Construction of the new station will allow the city to get two independent power facilities. Vostochnaya TPP input will increase Vladivostok heat power capacity and create the necessary provision for electricity and heat. According to our experts, the station will supply electricity to more than 50,000 apartments and provide heat to more than 600 multi-family houses. "
RusHydro strategy of energy development in the Far East includes replacement of economically inefficient capacities with effective power generation through incorporation of hydro and thermal generation; signing direct contracts with consumers of both existing capacities 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 European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
The EIB finances projects in the Russian Federation on the basis of an EU Council and European Parliament mandate for the Eastern Partner Countries (Armenia, Azerbaijan, Georgia, Moldova, Russia and Ukraine) of EUR 3.8 billion for the period 2007-2013 to contribute to local private sector development, the improvement of social and economic infrastructure, and climate change mitigation and adaptation.
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.