Under the agreement, a joint venture will be established by RusHydro with ownership of 51% and CTG with the remaining 49% for financing, constructing and operating up to 2,000MW hydroelectric plants in Amur Oblast and Khabarovskiy Kray, Russia.
The JV will evaluate and develop projects which include the 400MW Nizhne-Zeyskaya, 300MW Selemdzhinskaya, 462MW Giluyskaya and 600MW Nizhne-Nimanskaya hydropower plants at an estimated cost of RUB230bn ($4.89bn).
CTG will be responsible for negotiating with its Chinese counterparts for the electricity off-take contracts while RusHydro will prepare and provide detailed feasibility studies of each project approved by a reputable professional international financial advisor, as part of the agreement.
RusHydro CEO Evgeny Dod said: "In addition to protecting vast territories, both on Russian and Chinese banks of the Amur River from catastrophic floods and contributing to development of modern power infrastructure the region, the projects will provide additional stimuli for economic growth and job creation."
At least 70% of required funds will be raised by the partners from primarily Chinese and Russian institutions through long-term power purchase agreements.
CTG chairman Lu Chun said: "By signing this agreement, I hope that China and Russia can achieve a stronger cooperation in the clean energy development and a closer Sino-Russian strategic partnership, bringing benefits to the people in Russian Far East and along Helongjiang River in China."
