OREANDA-NEWS. October 18, 2010. EuroSibEnergo PLC (EuroSibEnergo"), the largest Russian independent power company and one of the largest private hydro-electric companies in the world, and China Yangtze Power Co. Ltd. ("China Yangtze Power"), the largest listed hydropower producer in China, have signed a Framework Agreement of Cooperation for the development of hydropower projects in Russia. The Agreement was signed by Andrey Likhachev, Chairman of EuroSibEnergo and Cao Guangjing, Chairman of China Yangtze Power.

The Agreement provides for EuroSibEnergo and China Yangtze Power to explore joint development opportunities for power projects in Russia, potentially including the upgrading of the EuroSibEnergo's power assets and the construction of new hydro power plants in Russia, with the specific focus on Siberia. These projects aim 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 the north and northeastern regions of China in accordance with the Russia - China Intergovernmental Agreement on power exports signed in 2006. The parties also agreed to make coordinated efforts to obtain support from their regulatory bodies and electricity grid companies in Russia and China.

The Agreement, which is preliminary, subject to a definitive binding agreement, also covers cooperation in the exchange of technology and management information.

"We are delighted to partner with China Yangtze Power in the development of the Russian hydropower industry and jointly explore opportunities in power exports from Russia to China. Russia, the Siberian region in particular, has significant undeveloped hydroelectric resources. This agreement strengthens energy cooperation between Russia and China." - commented Andrey Likhachev, Chairman of EuroSibEnergo.

"Russia has abundant supply of hydro power resource and China has enormous demand for power. Our joint development of  hydro power resource is strategically important for the business development of companies involved and also for Sino-Russia cooperation" - commented Cao Guangjing, Chairman of China Yangtze Power.