Russia’s Unified Energy System (UES) is to develop the 3000 MW Boguchany hydro plant and an associated aluminum complex in the Krasnoyarsk Territory as part of a joint venture with Russky Aluminum (Rusal), which will be one of the largest consumers.

The project, according to recent comments attributed to UES chairman Anatoly Chubais, would be built by 2009 and will be one of the world’s largest aluminium complexes.

Chubais’ comments follow the recent signing of a co-operation agreement to construct the Boguchanskaya energy and metals complex with UES subsidiary Hydro OGK and Rusal.

The Boguchanskaya hydro plant will be located on the Angara river in the Krasnoyarsk Region with power generated from 2009 along with the 600 000 tones per annum aluminium smelter.

The cost of completing the hydro plant and smelter is estimated at $ 3.6 billion, to be financed 30:70 from Rusal and Hydro OGK respectively. Some $2.5 billion is to be attracted from external sources Rusal said in a statement, and by the end of 2006, a credit facility of about $500 million will be put in place.

Investment on the preparatory works for the smelter construction and basic engineering will amount to $100 million by the end of 2006 with works on construction of the infrastructure totalling $698 million.

Construction of the $370 million Boguchanskaya reservoir will be financed by Federal government budget funds.