RusHydro signs a contract with Nigeria
May 22 2013 - 4:13AM
OTC Markets
RusHydro
signs a contract for management and modernization of 1.3 GW
hydropower capacity in Nigeria
JSC RusHydro (ticker symbol:
MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces that it has received
the first payment under agreement between RusHydro International AG
(subsidiary of RusHydro),
and Mainstream Energy Solutions Ltd (Mainstream Energy) of Nigeria,
for management services in regard of two hydropower plants in
Nigeria. The service agreement is signed for five years with
potential extension. RusHydro will not provide any financing for
the project.
In September 2012, a consortium of
Mainstream and RusHydro International AG won a tender to enter a
concession agreement for operating two hydropower plants in
Nigeria. The concession agreement between Mainstream and Nigerian
government was signed on February 21,
2013.
Both power plants – Kainji and
Jebba – are located on the Niger river, and have installed capacity
of 760 MW and 578 MW, respectively. Currently available capacity of
the plants is substantially below their installed capacity. The
concession conditions provide for modernization of the power plants
and increase of their available capacity.
RusHydro International
A.G. is responsible
for technical management and management of plant modernization. The
company will manage the plants’ operations to maximize their
capacity utilization and will also organize tenders for engineering
and construction services within modernization of the plants, as
well as supervise the contractors’ work.
Mainstream Energy has committed to
spend USD 452 mn for modernization of the plants during the first
five years of the concession. RusHydro will not provide any
financing for the project. Mainstream Energy will pay a fixed fee
to RusHydro International A.G. for rendered services, and
additional remuneration for organization of
tenders.
George Rizhinashvili, Deputy
Chairman of the Management Board of RusHydro, commented: “Nigeria
is a dynamic and a very promising market. We are excited to manage
such important project. Providing management and engineering
services allows us to leverage our expertise without committing
financial resources. We are interested in doing similar projects in
other markets”.
About
RusHydro:
RusHydro Group is one of Russia’s largest generating
companies. RusHydro is the leading producer of renewable energy in
Russia with over 70 generating facilities in Russia and abroad. The
company also manages a number of R&D, engineering and
electricity retail companies. Group’s thermal assets are operated
by subsidiary – RAO Energy System of East in the Far East of
Russia. Total electricity generation capacity of the Group is 36.5
GW, heat capacity – 16.2 thousand GCal/h.
Russian Federation owns 65.9% in RusHydro, the rest is
held by other institutional and individual shareholders (over
360,000). The company’s stock is traded on the MICEX and RTS stock
exchanges, and included in MSCI EM и MSCI Russia indexes. Company’s
GDRs in the IOB section of LSE, ADRs – in OTCQX.
For more information:
JSC RusHydro, Investor Relations Department
Tel. +7 (495) 225-3232
ext. 1319, 1607
ir@rushydro.ru
DISCLAIMER
The information in this press release may contain
projections or other forward-looking statements regarding future
events or the future financial performance of RusHydro. One 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 and rapid technological
and market changes in our industries, as well as many other risks
specifically related to RusHydro and its
operations.
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