RDIF, Nord Hydro, CR24BG and CCECC to invest in mini hydropower plants in Karelia

Press release, 18.06.2015

Saint Petersburg, 18 June, 2015 – 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, subsidiaries of the China Railway Construction Corporation, have agreed to invest in constructing small hydropower plants in Karelia. 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.

If the project is 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.”

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The Russian Direct Investment Fund (RDIF) was established in 2011 to make equity co-investments, primarily in Russia alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. Based in Moscow, RDIF’s management company is a 100% subsidiary of Vnesheconombank. Further information at rdif.ru

JSC Nord Hydro is a power generating and engineering management company that implements projects to launch new hydropower facilities and refurbish and upgrade existing facilities in Russia. The company was incorporated in Karelia in 2007. Nord Hydro manages project construction and its own design and operating divisions. From 2011 to 2014, the company, together with Vnesheconombank, invested in the construction and commissioning of three mini hydro power plants in Karelia with capacities totalling 6.5 megawatts. Over the next six years, the company plans to build eight more hydro power plants with a combined capacity of more than 160 megawatts, including the Byeloporozhskaya plants project. Additional information is available on http://www.nord-hydro.ru.

China Railway 24 Bureau Group Limited is a subsidiary of China Railway Construction Corporation. It was established on 16 March 2004 and is headquartered in Shanghai. The company has 14 subsidiaries (branches) in the eastern provinces of Anhui, Jiangsu, Zhejiang, Fujian and Jiangxi, as well as in Shanghai. It also has offices in Beijing and the North, East, South, Southwest, and Northwest of China. Group assets total 14.215 billion yuan (around $2.3 billion). The company focuses on the construction of railways, highways, municipal utilities, housing, hydroelectric facilities, roads, bridges, tunnels, etc. The group employs 12,857 qualified specialists. It is included in the Top 100 most significant construction enterprises in China. Further information at http://shtj.cr24b.com

China Civil Engineering Construction Corporation (CCECC) was established in 1979 under the approval of the State Council of the People’s Republic of China. As one of the pioneers performing international contracting and economic cooperation, CCECC has evolved from the earlier Foreign Aid Department of the Ministry of Railways of China into a large-scale state-owned enterprise with Chinese national Super Grade qualification for project contracting. CCECC has been listed among the world’s top 100 international contractors for seventeen consecutive years by the Engineering News Record “ENR”. Further information at www.ccecc.com.cn

For additional information please contact:

Maria Medvedeva
Russian Direct Investment Fund
Media Relations Director
Tel.: +7 495 644 34 14, ext. 2141
Mobile: +7 964 726 17 73
E-mail: mm@rdif.ru

Vladimir Romanchuk
Deputy Managing Director
JSC Nord Hydro
Tel.: +7 921 9534863
E-mail: rva@nord-hydro.ru

Hudson Sandler
Andrew Hayes / Elena Garside/ Yulia Shvets
Tel: +44 (0) 20 7796 4133