Russian hydroelectric firm RusHydro International has inked an agreement with Mainstream Energy Solutions to provide management and modernization services at two hydro power plants in Nigeria, with a total installed capacity of around 1.3GW.

As per the agreed terms, the company will be responsible for technical management and management of plant modernization at 760MW Kainji and 578MW Jebba hydro power plants, located on the Niger river.

In addition, the company will organize tenders for engineering and construction services within modernization of the plants, as well as supervise the contractors’ work.

Mainstream Energy will provide $452m for modernization of the plants during the first five years of the agreement, while RusHydro will not provide any financing for the project.

Commenting on the deal, RusHydro Management Board deputy chairman George Rizhinashvili said that Nigeria has good potential in the hydro power market.

"Providing management and engineering services allows us to leverage our expertise without committing financial resources. We are interested in doing similar projects in other markets," added Rizhinashvili.

Meanwhile, a consortium of Mainstream and RusHydro International won a tender in September 2012 to enter a concession agreement for operating two hydropower plants in Nigeria.