JSC RusHydro intends to acquire a controlling stake in the Vietnamese Dakdrinh Hydropower Company
October 31, 2010 RusHydro (ticker symbols: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) has signed an agreement for acquisition of controlling stake into acquire Dakdrinh Hydropower with Vietnam Oil and Gas Corporation, owning 75% of the company. The agreement was signed by Evgeny Dod, Chairman of the Management Board of RusHydro and Phung Dinh Thuk, President and General Director of Vietnam Oil and Gas Corporation. The sale and purchase agreement drafts are planned to be prepared prior to December 31, 2010.
The company, shares of which became the agreement's subject carries out hydropower plant construction in Quang Ngai province in Vietnam. At present the design stage is finished and the hydro system on the Dak Drinh River is under construction. The designed HPP installed capacity is 125 MW, average multi-year power generation amounts to 540.25 GW*h.
Purchase of shares of the Vietnamese company is planned by RusHydro under the Strategic Plan of the Company for the period till 2015 approved by the Board of Directors. The document stipulates international activity development with emphasis on participation in construction and acquisition of foreign hydropower assets. In accordance with the Strategic Plan it is expected to increase the foreign assets of RusHydro Holding by 2015 no less than to 1 GW installed capacity and 3 GW capacity under construction. By 2020 the installed capacity of RusHydro's foreign plants should amount to 5 GW.
The choice of the HPP Dakdrinh project has been prompted by the fact that at present Vietnam is one of the most stable and rapidly growing markets in Asia. Stable investment environment is created here; the government of the country conducts a set of actions aimed at power industry liberalization. Vietnam plans to increase installed capacity of its power plants from 26,000 MW in 2010 to 60,000 MW by 2015. At present 31 HPPs of 7,500 MW total capacity are under construction in the country.
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