OREANDA-NEWS. February 28, 2011. EuroSibEnergo PLC (“EuroSibEnergo”), the largest Russian independent power company and one of the largest hydro-electric companies in the world, and China Yangtze International (Hong Kong Co., Limited) (“China Yangtze International”), a wholly-owned subsidiary of China Yangtze Power Co. Ltd. (“China Yangtze Power”), the largest listed hydropower producer in China and one of the top hydropower producers in the world, have today announced the formal establishment of a joint venture (“JV”) to develop hydro and thermal power projects in the Siberian part of Russia.

The JV Company, YES Energo Ltd (the name comes from Yangtze Power and EuroSibEnergo), is registered in Hong Kong with a statutory capital of US\\$6 million. EuroSibEnergo and China Yangtze International each hold a 50% stake in YES Energo. The relevant Chinese authorities have approved the JV.

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, with an aim to build up to 10GW 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.

The Board of Directors of YES Energo includes the following members:

Andrey Likhachev, Chairman of the Board of Directors of EuroSibEnergo PLC
Alexander Sergeev, Member of the Board of Directors of EuroSibEnergo PLC
Vyacheslav Solomin, First Deputy CEO - CFO of EuroSibEnergo PLC
Zhang Cheng, General Manager of China Yangtze Power Co ltd
Bai Yong, CFO of China Yangtze Power Co ltd
Zhang Dingming, Deputy General Manager of Yangtze Power Co ltd

“Strategic cooperation with companies like EuroSibEnergo is a very important focus of our future strategy. Mutually beneficial relationships such as the YES Energo JV 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. ” - commented Cao Guangjing, Chairman of China Yangtze Power.

“We are very excited to begin working together with China Yangtze Power on this landmark cooperation. YES Energo is a perfect example of how Russia and China can partner strategically to shape the future of the energy industry. China’s power market, in line with its economy, is expanding at an exponential rate, and is forecasted to do so for some time. The YES Energo JV is the first step towards what we hope will be a bright future of cooperation between our companies.” - commented Andrey Likhachev, Chairman of EuroSibEnergo.

About the companies:

EuroSibEnergo PLC  is Russia's largest independent power company (in terms of installed electricity capacity) and one of the largest hydro-electric generating companies in the world. EuroSibEnergo operates 18 power plants with total installed capacity of 19.5 GW, including 15 GW from some of Russia’s largest hydropower plants in Siberia. The company’s coal reserves exceed 1.2 billion tons. In 2009 the power stations of EuroSibEnergo produced more than 82.8 TWh, which accounts for almost 9% of total electricity output in Russia.

China Yangtze Power Co. Ltd (www.cypc.com.cn) is the largest listed hydropower electricity producer in China and one of the top hydropower producers in the world; operates hydropower plants on Yangtze river, including the world’s largest hydropower plant Three Gorges. China Yangtze Power Company is controlled by Three Gorges Corporation, and its shares are listed on Shanghai Stock Exchange.