EuroSibEnergo and China Yangtze Power Co. Select Top Priority Power Projects for Joint Investment
17 JUNE 2011Saint Petersburg, 17 June 2011 - EuroSibEnergo, the largest independent power producer in Russia, and China Yangtze Power Co. ("CYPC"), the largest Chinese listed hydroelectricity producer, signed a Framework Agreement that provides for joint investment of a list of power plant construction projects in Eastern Siberia. The Agreement was inked by Andrey Likhachev, the Chairman of EuroSibEnergo, and Yong Bai, Chief Financial Officer of CYPC during the Saint Petersburg International Economic Forum. The top priority list includes the following projects:Lenskaya CHP. Installed capacity - up to 1,200 MW; location - Ust-Kut, Irkutsk region; fuel used in the project's initial development phase will be gas associated with local oil fields. Key consumers of electricity include Baikal Amur Mainline, gold producers in the north of Irkutsk region and Taishet aluminium smelter (UC RUSAL project, currently under construction). Nizhne-Angarskaya HPP (Angara river). Installed capacity - 600 - 1,500 MW; location - Krasnoyarsk Territory, ca. 120 km downstream from the Boguchanskaya HPP currently under construction. Key consumers include gold producers, the proposed North Siberian railway and Taishet aluminium smelter (UC RUSAL project, currently under construction). Trans-Sibirskaya HPP (Shilka river). Installed capacity - 400 - 900 MW; location - ca. 250 km from Mogocha, Trans-Baikal Territory. Trans-Sibirskaya HPP will provide an opportunity to synchronize the power systems of Siberia and the Russian Far East; it could also meet power demand of the Chinea polymetal deposit development project (implemented by En+ Group) and other mineral resources recovery projects in the Trans-Baikal Territory.Both companies are currently performing the preliminary work of the feasibility study and financing of the joint investment projects and plan to start the actual work as soon as possible. The companies plan is to involve the most prominent Russian and international environmental organizations to help develop a feasibility study of each project in order to ensure they meet the highest environmental standards.Andrey Likhachev, Chairman of the EuroSibEnergo, commented: "The selected projects are in line with EuroSibEnergo's strategy that focuses on renewable, carbon-free and environmentally-friendly energy. The proposed new plants will be the foundation for the development of the new industries and infrastructure in Eastern Siberia, driving the region's economy growth. The pilot projects within our strategic partnership with China Yangtze Power will set new technological and environmental standards for the industry.""The strategic partnership between China Yangtze Power and EuroSibEnergo has reached a new level. We are delighted to sign this important agreement to cooperate on the development of and investment in these power plants. The relationship between our two companies is going to be strengthened further and both our companies and energy consumers will benefit a lot," - said Yong Bai, Chief Financial Officer of CYPC. About the companies:EuroSibEnergo PLC (www.eurosib.ru) is Russia's largest independent power company in terms of installed electricity capacity and one of the largest hydro-electric generating companies in the world. EuroSibEnergo operates 18 power plants with total installed capacity of 19.5GW, including 15GW from some of Russia's largest hydropower plants in Siberia. The company's coal reserves exceed 1.2 billion tons. In 2010 the power stations of EuroSibEnergo produced more than 87TWh, which accounted for almost 9% of total electricity output in Russia.China Yangtze Power Company (www.cypc.com.cn) is currently the largest listed hydropower company in the China, principally engaged in hydropower generation. the China Three Gorges Corporation initiated the establishment of The China Yangtze Power Co., Ltd，a limited-liability company。The Company owns the Gezhouba Hydropower Plant and all the generating units of Three Gorges Project that are put into production, with total installed capacity of 21,077 MW.