Russia’s Unified Energy System (UES) is to develop the 3000MW Boguchanskaya hydro plant and an associated aluminum complex in the Krasnoyarsk Territory as part of a joint venture between 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 cooperation 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 US$3.6B to be financed 30:70 from Rusal and Hydro OGK respectively. Some US$2.5B is to be attracted from external sources Rusal said in a statement, and by the end of 2006, a credit facility of about US$500M will be put in place.

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

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