Rosseti, Chinese State Grid Corporation sign shareholders' agreement
BEIJING. June 26 (Interfax) - The Russian power grid company Rosseti and the State Grid Corporation of China (SGCC) signed a shareholders' agreement to set up a joint venture, an Interfax correspondent reported from the signing ceremony that took place as part of Russian President Vladimir Putin's visit to China on Saturday.
In May 2014, the two companies signed an agreement to set up a joint venture to build new power grid infrastructure and refurbish the existing one in Russia and other countries.
Joint projects will get annual funding of up to $1 billion, Rosseti told Interfax at the time. Projects concerning distribution and transmission networks will be financed both by the JV shareholders and with funding from Chinese and other foreign financial institutions.
It was expected that the joint venture would be 51% owned by Rosseti and 49% by the SGCC.
The joint venture will also function as an engineering, procurement and construction contractor (i.e. turnkey construction, including the design, purchase and construction) in Russia and in other countries, Rosseti said at the time.
Rosseti earlier met with the Bank of China, the Industrial and Commercial Bank of China and the Agricultural Bank of China on the subject of raising long-term loans and investment for the joint projects with the SGCC.