Chairman Vyacheslav Sinugin of Russian hydro utility JSC HydroOGK traveled to Dagestan Republic April 11-12 to discuss the status of hydropower project construction with officials of the regional government and JSC Regional Power Generation Co. of Dagestan (Dagenergo).
Participating in the conference were representatives of investment agencies including the World Bank, Fortum, Mitsui, Global Energy Services, and Rosnor. The agenda included visits to the 15-MW Gunib project (HNN 7/17/06) and the construction site of the 100-MW Gotsati hydro project on the Avar Koisu River. (HNN 9/29/06)
Dagenergo said that HydroOGK, majority owner of Gotsati, plans to solicit tenders from potential investors in the project by July.
The delegation was told of favorable conditions for investment in Dagestan, including an agreement between the government, HydroOGK, and Dagenergo, as well as legislation promoting reform of the republic’s hydropower complex.
Sinugin met April 12 with Dagestan President Mukhu Aliev to discuss regional support for the program of mini- and medium-sized hydropower plant construction in Dagestan. Later that day, the delegation flew to Rostov to discuss electricity development in the Southern Federal Region of Russia.
Dagestan, which is located on the shore of the Caspian Sea, has utilized only 10 percent of its hydropower potential, which is estimated at 16,000 MW. Dagenergo is undertaking a hydropower development program that envisions building three cascades of hydro projects totaling 2,400 MW plus numerous smaller hydro projects by 2020.