HK, Russian groups to build Siberian power plants

Russia's EuroSibEnergo and China Yangtze International  have signed an agreement to form a joint power venture in Russia's Siberia, the EuroSibEnergo announced on Thursday.

China Yangtze International is the Hong Kong subsidiary company of China Yangtze Power.

According to the agreement, the joint venture "YES Energo", of which the EuroSibEnergo and the China Yangtze International each hold a 50 percent stake, will develop hydro and thermal power projects in Siberia, said a report by Xinhua news.

In the first stage of the venture, YES Energo will examine two hydropower and one thermal project in Eastern Siberia with a total installed capacity of over 3 GW, the EuroSibEnergo said in a statement, adding that the joint venture is aiming at building up to 10 GW of new capacity to feed the growing domestic demand for electricity which is anticipated in the region and to create additional capacity for power exports from Siberia to China.

"Mutually beneficial relationships such as the YES Energo will further strengthen ever-expanding Sino-Russian strategic partnerships, and we hope that our partnership will provide a good example for other companies and industries seeking to boost Sino- Russian bilateral cooperation," the Chairman of China Yangtze Power Cao Guangjing said in the statement.

Chairman of EuroSibEnergo Andrey Likhachev praised the cooperation as a "landmark", saying "YES Energo is a perfect example of how Russia and China can partner strategically to shape the future of the energy industry."

According to the statement, the YES Energo, whose name comes from China Yangtze Power and EuroSibEnergo, is registered in Hong Kong with a statutory capital of 6 million U.S. dollars.

China Yangtze Power is the largest listed hydropower electricity producer in China and one of the top hydropower producers in the world.