RusHydro and K-Water signed a cooperation agreement
PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) and Korea Water Resources Corporation (K-Water) have signed agreement on cooperation in the sphere of hydropower and water resources management. The document was signed on the platform of East Economic Forum by George Rizhinashvili, Management Board member, First Deputy CEO of RusHydro and Chong Kooyol, Technical Executive Director of K-Water.
The agreement is signed in development of Memorandum of understanding signed between RusHydro and K-Water on January 30, 2015 in Moscow. The Memorandum reflected mutual interest of the parties in cooperation in such spheres as hydropower, renewables and comprehensive water resources management in Russia, South Korea and third countries.
The document, signed on the platform of the Eastern Economic Forum determines, as pilot project for cooperation between the parties, joint study of hydropotential of Dagestan. If positive economic effect from hydropower plants construction will be confirmed and decision on further implementation of the projects will be adopted, RusHydro and K-Water will undertake necessary measures and transition to the next stage: implementation of feasibility studies and main design, as well as obtaining necessary approvals.
The parties will create a Working group in order to coordinate the work of engineering and design organizations. The tasks of the Working group, in addition to evaluation of hydropotential of Dagestan, will include appraisal of implementation of the Primorsky Energy and Water Resources Complex (PEWC) project in the Russian Far East.
The PEWC project includes construction of Primorskaya Pump Storage Hydropower plant located in 45 km distance from Vladivostok and Primorskaya HPP on the Razdolnaya River, which would enable to establish a direct waterlink between Vladivostok Commercial Sea Port and Khabarovsk Commercial River Port. If implemented, the project will make water supply of Vladivostok and Vladivostok region more reliable, will enable to establish a rail and automobile bridge over Razdolnaya River over the hydro-power plant dam. The Project would also shorten the shipping distance by water between Vladivostok and Khabarovsk from 2400 km to 800 km and provide for stable cargo flows between the two cities. It would also protect adjacent territories from flooding and increase reliability of Unified Energy System of the Far East as well as enhance potential of electricity export to China.
K-water was founded in 1967. The Company implements comprehensive approach to development of renewable energy and energy security of South Korea. Today K-Water operates 30 dams, 69 water supply facilities and 14 sewage treatment facilities. The Company is also involved in rivers restoration projects and builds canals. Currently installed capacity of the Company renewable energy facilities totals 1.3GW and includes tidal power plant Sinwa (254 MW) - largest in the world. Beginning with 1994 the Company has completed more than 40 projects in 23 countries and 24 are still in progress.
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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