Interfax cited Mr Sergei Shmatko Energy Minister of Russia as saying that RusHydro will manage the construction of the Boguchansk Hydroelectric Station.
Mr Shmatko said "Talks were held with United Company RUSAL and RUSAL agreed that construction of the station would be carried out by the project company managed by RusHydro."
An official at RUSAL said "That form of management fully meets the interests of RUSAL, since RusHydro guarantees compliance with the deadline for startup and with the budget that incorporates the optimization proposed by RUSAL. Any cost overruns will be covered by RusHydro but will not change the two companies' stakes in the project.”
Mr Shmatko said "We are speaking of the need for the swift completion of the Boguchansk hydropower plant especially following the accident at the Sayano-Shushenskaya plant."
According to the report, plans are to add three hydropower units before the end of 2010.
Mr Shmatko acknowledged shortcomings in the organization of the Boguchansk construction project. He said that "RusHydro and RUSAL are constantly in conflict."
RusHydro and RUSAL are responsible for completing construction of Boguchansk which will require RUB 54.93 billion in capital investment. The station is scheduled to achieve design capacity, 3,000 megawatts in 2012.
(Sourced from Interfax)
