United Company RUSAL (UC RUSAL) and JSC RusHydro (RusHydro) will reduce expenses on construction work and equipment at the Boguchany hydropower plant (Boguchany HPP) by 40% in 2009 to 2010, media reported. This will help in saving RUB8 billion. The Boguchany Energy & Metallurgical Association project cost cutting proposal was made by UC RUSAL and supported by RusHydro in a meeting with government officials. Cost cutting is being resorted to in the wake of financial crisis.
Boguchany HPP is expected to be complete on schedule, with initial capacity expected to come on line in 2010.
Ever since the construction work on the Boguchany HPP started in 2006, RUB21 billion has been spent on it. The project is 75% complete now.
RusHydro said In the current financial conditions, a great deal of attention is being paid to fighting the costs of investors and principal contractors.
Boguchany HPP will have 3,000 megawatt capacity and the 600,000 tonnes per year Boguchany Aluminum Smelter that will be the power plant’s main customer. The design capacity is expected to be achieved in 2012. But in February 2009 it was announced that the opening of the smelter would be postponed until 2012 in light of the drop in demand for aluminum on global markets.