RDIF’s portfolio company breaks ground on the construction of hydropower plants in the Republic of Karelia; BRICS New Development Bank’s first project in Russia
Press release, 11.10.2016
Karelia, October 11, 2016 – The Russian Direct Investment Fund’s (RDIF) Portfolio Company "Nord Hydro-Beliy Porog" has broken ground on the construction of small hydropower plants on the river Kem, in Karelia, Northwest Russia. The breaking ground ceremony was held in the presence of the Head of the Republic of Karelia Alexander Khudilainen, RDIF executives and its international partners Sinomec, the New Development Bank (NDB) founded by the BRICS countries, and other organisations involved in the project.
The construction of two Beloporozhskaya hydro power plants with a total capacity of 49.8 MW is the NDB’s first project in Russia. As of today, it is the Bank’s first and only project to have broken ground.
The construction of Beloporozhskaya HPPs, which will supply electricity to the region’s population and industries, is included on the priority projects list of the Federal Target Program "Development of the Republic of Karelia for the period till 2020". The construction is expected to be completed before 2020. RDIF joined as project investor in 2015.
Kirill Dmitriev, CEO of Russian Direct Investment Fund (RDIF), said:
“For this project, we have developed a unique financing mechanism with the participation of several top-tier financial institutions. Construction of environmentally friendly facilities in the energy-deficient region will mark a significant step forward for the social and economic development of Karelia. It is important that through a combination of equity and debt financing the project creates attractive investment opportunities for international partners of RDIF.”
Vladimir Kazbekov, Vice-president of the New Development Bank, said:
"The first Russian project of the Bank isfully consistent with the task set out by the BRICS leaders to promote green and renewable energy. I am sure that the New Development Bank will be a significant source for attracting long-term investments to fund large-scale infrastructure projects in Russia."
Alexander Khudilainen, the Head of Karelia, said:
"Renewable, clean energy sources are the future of the industry. They will ensure a better quality of life for consumers through stable and uninterrupted energy. I am sure that Karelia’s innovative experience in the construction of small hydropower plants could in the future be exported to the CIS and foreign countries interested in the production of safe and clean energy."
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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. RDIF’s management company is based in Moscow. Further information can be found at www.rdif.ru
New Development Bank is the international financial organization, development bank, which was founded and is managed by the member countries of BRICS (Brazil, Russia, India, China and South Africa). The bank's purpose is financing of infrastructure and sustainable development projects in BRICS member countries and developing nations.
For additional information contact:
Russian Direct Investment Fund
Director of External Communications
Tel: +7 495 644 34 14, ext. 2141
Mobile: +7 964 726 17 73
Andrew Hayes / Yulianna Vilkos
Tel: +44 (0) 20 7796 4133