The Russian Direct Investment Fund (RDIF), the Government of the Republic of Karelia, Nord Hydro, the China Railway 24th Bureau Group and China Civil Engineering Construction Corporation have agreed to invest in constructing small hydropower plants in Karelia, Russia.
The agreement was signed today during the St Petersburg International Economic Forum.
Under the agreement two small hydropower plants, Byeloporozhskaya HPP-1 and HPP-2, will be constructed, each with a capacity of 24.9 megawatts (MW). The project aims to create new, renewable and environmentally friendly energy sources to efficiently develop the Republic of Karelia’s power system.
The new hydropower plants will be pilot projects. If they are successfully implemented, RDIF will consider the possibility of extending it to other parts of Karelia and other energy deficient regions in Russia.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
“This project unites RDIF and the government of Karelia in their mutual aim to improve energy infrastructure and investment climate in the region. By working together we hope to realize Russia’s considerable potential in small-scale power generation.”
Wu Wanliang, Chairman of CCECC, said:
“We are excited to initiate this partnership to jointly develop the electricity generation of the Republic of Karelia. The combination of our partners' technical expertise, financial resources and deep knowledge of local market will promote the project.”
Alexander Khudilainen, Head of the Republic of Karelia, said:
“The agreement with our Chinese partners marks a new phase in our campaign to engage strategic investors in Karelia. Cooperating with the Russian Direct Investment Fund will enable us to work together to improve the region’s investment climate and implement the most promising projects. The creation of mini hydro power plants, which will be built jointly with Nord Hydro, the China Railway 24th Bureau Group and China Civil Engineering Construction Corporation, is one of these projects. The agreement that we signed today reaffirms our commitment to partnerships and an open investment policy.”
Alexey Vinogradov, Managing Director of Nord Hydro, said:
“In 2013 Nord Hydro initiated the simultaneous construction of two hydropower plants – Beloporozhskaya HPP-1 and HPP-2 – in Karelia. The company has already invested more than 5% of the total investment cost with its own funds and has gained experience of constructing small hydro power plants in Karelia. A project of this scale, however, will require professional and financial support from other investors.”