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Russia's RusHydro, RUSAL may raise 32 bln rbl VEB loan for BEMO project - paper

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Russia's largest hydropower producer RusHydro and the world's top aluminum maker RUSAL may raise a 32 billion ruble loan from Vnesheconombank for a Boguchansk Energy and Metallurgical Association (BEMA) project, Vedomosti business daily said on Wednesday.

Russia's largest hydropower producer RusHydro and the world's top aluminum maker RUSAL may raise a 32 billion ruble loan from Vnesheconombank for a Boguchansk Energy and Metallurgical Association (BEMA) project, Vedomosti business daily said on Wednesday.

The paper quoted sources close to both companies as saying that 22 billion rubles of the credit will go towards completing construction on the Boguchanskaya hydro power station on the Angara River and 10 million rubles will be put into the construction of an aluminum plant.

A RUSAL spokesman told Vedomosti that the companies were still negotiating, adding that it was too early to speak about concrete plans. RusHydro declined to comment.

The Boguchanskaya station is to be launched in 2010 with the start of production in three units, which have an overall capacity of one GW. The power station may reach its maximum output in 2012.

The station is 80 percent ready and the aluminum plant is 30 percent ready, RusHydro and RUSAL spokesmen said.

RUSAL has not presented any cost estimate yet, although the initial sum required is around $1.6 billion, Vedomosti quoted a source close to RusHydro as saying. The company will need about 34 billion rubles, he added. The partners will have to find another 12 billion rubles to complete the projects.

The sources have not disclosed the terms and conditions of the potential loan but did say that VEB does not plan to join the project.

The agreement, dated 2007, states that the two companies finance the station and the aluminum plant on a parity basis. RusHydro manages the construction of the station, while RUSAL manages the construction of the plant.

The companies can block each other's decisions. Russian Deputy Prime Minister Igor Sechin said last December that RUSAL had exercised its veto right in 2008-2009, claiming that the station's construction cost was overestimated and the construction had been suspended for seven months.

 

MOSCOW, July 21 (RIA Novosti)

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