10 Aug 2009 12:58

RUSAL creditors

MOSCOW. Aug 10 (Interfax) - United Company RUSAL (UC RUSAL) has won approval from creditors to invest in construction of the Boguchansk hydropower plant.

The decision follows approval late last month for a long-term restructuring of $7.4 billion in RUSAL debt.

"We agreed with the banks that RUSAL will invest as much as is necessary to maintain the launch date for the first line of the Boguchansk Hydroelectric Station . As you know, it is more than 80% complete," RUSAL's director for capital markets Oleg Mukhamedshin told Interfax in an interview.

"We put great stock in a key project, BEMO, but RUSAL can still invest money in other projects," he said, using the acronym for the Boguchansk Energy & Metallurgical Association project. "We have a whole host of significant projects, for example, the Taishet aluminum smelter, boosting operations at the Nigeria plant to full capacity. We will seek project financing," he said.

Construction of the 3,000-megawatt Boguchansk hydroelectric plant is being completed by RusHydro and RUSAL. Capital investment in construction totals 54.93 billion rubles. The first three, 600-megawatt hydropower units are slated for startup in 2010. Design capacity is expected to be reached in 2012.

BEMO is a joint project between RusHydro and RUSAL. The two companies are carrying out the project on a "two-turnkey" basis which provides for joint financing and decision-making.