RDIF and partners build the dam for Karelia hydropower plants

Press release, 30.07.2019

Moscow, July 30, 2019 – The Russian Direct Investment Fund (RDIF, Russia’s sovereign wealth fund), announces alongside their partners from China and the Middle East, and Nord Hydro, the closing of the channel of the Kem river in the Republic of Karelia and the creation of a key infrastructure element of Beloporozhsky hydropower plants (HPP).

The construction of the Beloporozhsky HPPs is the first joint project between RDIF and its foreign partners to take place in the Republic of Karelia, a clear example of the successful implementation of the Fund’s strategy to attract investments to develop the Russian regions. As a result the leading sovereign funds of the Middle Ease were attracted to the project’s construction as well as a consortium of first-class credit institutions, including the New Development Bank (NDB) created by BRICS countries. NDB’s participation in the construction of Beloporozhsky HPPs represents their first project in Russia.

The overlapping of the river bed is one of the most significant and difficult stages in the construction of hydroelectric power plants. The construction of the Beloporozhsky HPPs with a total capacity of 49.8 MW began in 2016 creating additional highly skilled jobs in the Republic of Karelia. The commissioning of hydropower plants expected at the end of 2019 will significantly increase region’s tax revenues.

When implementing the plant construction project, special attention was paid to the use of Russian technologies and import substitution. The production of main equipment, including turbines and electric generators, was carried out in Russia. The cutting-edge technologies and equipment produced in Russia will increase the life and efficiency of the stations.

Commissioning of the HPPs will help eliminate the shortage of energy capacities in Karelia by utilizing renewable, environmentally friendly sources while also. The construction of two facilities of small hydropower plants is already underway with turbines being installed. The installation of three segmented gates of the spillway dam has been completed and all the main water flow control equipment has been produced.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
“The construction of the Beloporozhsky HPPs delivers an important contribution in support of the region’s energy potential and generating capacities. Our use of modern technologies and equipment stimulates clean energy and minimizes any environmental risks. This venture is evidence of the value of effective foreign investment and the significant potential of public-private partnerships for developing infrastructure in the regions. Furthermore, this project creates opportunities around the exporting of Russian competencies and technologies in hydrogeneration in the future”.

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Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund 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. Currently, RDIF has experience of the successful joint implementation of more than 70 projects with foreign partners totaling more than RUB 1.5 tn and covering 95% of the regions of the Russian Federation. RDIF portfolio companies employ more than 800,000 people and generate revenues which equate to more than 6% of Russia’s GDP. RDIF established joint strategic partnerships with leading international co-investors from more than 15 countries that total more than $40 bn. Further information can be found at www.rdif.ru

For additional information contact:
Arseniy Palagin
Russian Direct Investment Fund
Press Secretary
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: arseniy.palagin@rdif.ru

Andrew Leach / Maria Shiryaevskaya
Hudson Sandler
Tel: +44 (0) 20 7796 4133