RusHydro and the government of Kemerovo region signed a cooperation agreement to complete construction of Krapivinskiy hydroelectric complex
February 10, 2020 Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) and the government of Kemerovo region signed a cooperation agreement to complete construction of Krapivinskiy hydroelectric complex. The document was signed by Nikolay Shulginov, Chairman of the Management Board – General Director of RusHydro and Sergey Tsivilev, governor of Kemerovo region.
Construction of hydroelectric complex along with 300 MW Krapivinskaya HPP on the Tom’ River in Kemerovo region began in 1976. The project’s ultimate goal was construction of a reservoir for efficient power generation as well as protection of Kemerovo and Tomsk regions from flooding. The hydropower complex, engineered by Lenhydroproject included an automobile road on the crest of a dam to replace the ferry crossing. Upon 50% completion, the project’s construction came to a halt in 1989 due to lack of funding. Now that Zaramagskaya HPP-1 is online and operating, Krapivinskaya HPP remains the only major hydropower project, which has not been completed since the Soviet era.
Nikolay Shulginov, Chairman of the Management Board – General Director of RusHydro commented: ‘RusHydro Group possesses unique capabilities to engineer and build hydropower facilities. Only last week we have commissioned Zaramagskaya HPP-1, long-delayed Soviet project and we fully understand the necessity to finish construction of Krapivinskaya HPP as it will improve the environmental situation in Kemerovo region and contribute to further development of carbon-free energy. In cooperation with the government of Kemerovo region, we will seek funding for this important social economic project and reiterate our readiness to carry out design and construction works. We have all the necessary competencies and vast hydropower construction experience for this job’.
In the agreement both parties recognize the importance of completing the project of Krapivisnkaya HPP. Prior to singing, onsite research confirmed that already built structures can be utilized to complete construction. By utilizing modern hydropower equipment, the facility’s projected installed capacity could be increased to 345 MW.
Sergey Tsivilev, governor of Kemerovo region commented: “Krapivinsky hydropower complex will solve Kuznetsk Basin’s environmental problems thanks to flood control on the Tom River as it will be a full-flowing river once again. Water supply to the cities will increase as well and the electricity will come from hydropower, an environmentally clean source.”
The next step for the project is to conduct a detailed analysis with local specialists of the consequences the construction could have on the environment, as well as hold an open discussion and relevant hearings in relation to the project’s next steps and its effects.
RusHydro and Kemerovo region’s government will jointly work towards presenting the project to the Government of the Russian Federation and Russian Federation State Council with the aim to include it in the comprehensive plan to upgrade and expand core infrastructure until 2024, which was approved by the Government of the Russian Federation in accordance with the presidential executive order On National Goals and Strategic objectives of Russian Federation until 2024 from May 2018. The project’s completion will bring in additional investment into the region, foster economic growth and employment of local population.
The parties agreed to jointly seek sources of funding for the project. The government of Kemerovo region has also initiated transfer of the unfinished construction from federal ownership to Kemerovo region.
It will take five years to complete the hydroelectric complex once construction restarts. The plant’s annual average electricity output is projected at 2 TWh. The facility will be equipped with three 115 MW hydropower turbines. Project’s total cost as well as technical parameters will be available once project documentation is completed and approved by Russia’s General Board of State Expert Review.
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 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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