Russian state-owned energy company RAO UES Rossii and aluminium producer Rusal will set up a company on a parity basis to complete the construction of Boguchanskaya hydro power plant in Siberia.

Vyacheslav Sinyugin, chairman of the board of directors of RAO UES subsidiary HydroOGK, announced that RAO UES and Rusal have signed a memorandum of intent, establishing another company which will own a 90% stake in Boguchanskaya.

According to Sinyugin, the project will be 30-50% financed from the company’s funds, while loans will cover the other 70-50%.

The construction of the Boguchanskaya hydro power plant started in 1980 and was scheduled for completion in 1992, but the project was suspended due to a lack of funds. The plant is 55% ready and is now expected to take 27-28 months to complete.