Agreement on the Development of the Lower Angara Area Signed

Today, on April 17, an Investment Agreement “On the Joint Financing of the Investment Project “Comprehensive Development of the Lower Angara Area” by way of Using Financial Resources of the Russian Investment Fund and Commercial Organizations” was signed in Vnesheconombank.

The Agreement was signed by the Federal Road Agency, the Federal Railroad Transport Agency, the Federal Energy Agency, the State Customer – the Council of the Krasnoyarsk Territory and the Krasnoyarsk Territory Development Corporation whose founders are the Krasnoyarsk Territory Administration, United Company “Rossiisky Aluminy”, OJSC GidroOGK, Vnesheconombank.

The Investment Project “Comprehensive Development of the Lower Angara Area” has become one of the first projects aimed at building infrastructure facilities approved by the Government of the Russian Federation. The project’s implementation provides for establishing two industrial clusters, namely, energometallurgical and timber processing associations incorporating industrial and infrastructure facilities to be used for establishing industrial companies and developing the Lower Angara Area.

The signing of the Investment Agreement is a final stage in preparing for carrying out the investment project providing for completing the construction of the Boguchany hydropower station with a capacity of 3000 MW, building an aluminum factory with an output of 600000 tons of aluminum per year and a timber processing complex with an output of 732000 tons of pulp per year. 

The Boguchany hydropower station and the aluminum factory are built under the Agreement on Cooperation between United Company “Rossiisky Alumuny” and OJSC GidroOGK in the course of carrying out a joint project of BEMO companies (the Boguchany Energometallurgical Association).

Investors’ own and raised funds intended for building industrial facilities under the investment project will amount to 179.7 billion rubles. Financial resources from the Investment Fund in the amount of 34.2 billion rubles will be used for building a power transmission line of the Boguchany hydropower station, rebuilding the Kansk-Aban-Boguchany–Kodinsk motorway, building the Karabula-Yarki railway, building a bridge across the Angara river with a segment of the Bohuchany-Angarsk motorway.

The implementation of the investment project “ Comprehensive Development of the Lower Angara Area” would make it possible to establish a new point of growth in the real sector of the Russian economy in a strategically significant Russian region, namely in Eastern Siberia, thus resulting in increasing budget revenues of all levels, diversifying the economy, boosting economic growth rates of the region and promoting foreign economic ties.   .

OJSC The Krasnoyarsk Territory Development Corporation - OJSC The Krasnoyarsk Territory Development Corporation was established in 2006 by four shareholders: the Krasnoyarsk Territory Administration, OJSC HydroOGK, PLC Bazovy Element and Vnesheconombank in order to make fundamental changes in the Krasnoyarsk Territory’s economy through carrying out major PPP investment projects in the region. The Corporation developed the public-private investment project “Comprehensive Development of the Lower Angara Area” and made an investment proposal for financial resources of the Russian Investment Fund.

Vnesheconombank (VEB) is a state-run specialized financial institution founded in 1924. VEB gives top priority to supporting Russian industrial exports, implementing major projects including infrastructure ones in Russia’s key industries, raising funds to invest them in Russian regions, and  acts as an agent for the Government of the Russian Federation. As of today, the State Duma has approved in the second reading the Bill “On the Development Bank”. This Bank is being established on the basis of Vnesheconombank.

United Company “Rossiisky Aluminy”  is the world’s leader in the aluminum industry. It exports its products to 70 countries. The United Company accounts for 12.5% of the world aluminum production  market and 16% of alumina production.

Federal Hydrogenerating Company (OJSC HydroOGK) was established in accordance with Resolution of the Russian Government №1254-r of September 01, 2003 (in the revision of October 25, 2004). The Company is a 100% subsidiary dependent company of RAO UES of Russia. When the Company’s formation is completed it will incorporate about 50 Russian hydropower stations with a total installed power of about 23 GW and will become one of the world’s largest hydrogenerating companies. OJSC HydroOGK is a majority shareholder of the Boguchany Hydropower Station, with 64.23% of the station’s shares owned by RAO UES of Russia having been transferred to the Company’s balance in February 2005.  

Origin: Press office of Vnesheconombank
Contact person: Svetlana Nikitina
Phone: +7 (495) 208-46-93, Fax: +7 (495) 975-21-34
E-mail: press@veb.ru