Russia’s HydroOGK secures US$58 million for new, upgraded hydro

Russian hydropower generator HydroOGK signed an agreement with the Morgan Stanley investment firm to raise a seven-year loan of 1.5 billion rubles (US$58 million) for its hydropower investment program.

HydroOGK said May 14 the loan is pegged to the Moscow Prime Offered Rate (MosPrime), a ruble loan reference rate in the Moscow market. It said it raised 3 billion rubles (US$116 million) with Morgan Stanley in December 2006.

The hydropower utility said the loan would finance the upgrade of existing hydropower projects and the completion of new projects.

HydroOGK said in April it hired Merrill Lynch and two Russian banks, IFK Metropol and KIT Finance, to advise it on consolidation. (HNN 4/6/07) HydroOGK is being spun off from power monopoly Unified Energy Systems. It is to become the world’s second largest hydropower generation company, after Canada’s Hydro-Quebec, combining more than 50 hydroelectric stations and 23,300 MW of installed capacity.

HydroOGK and corporate allies have launched state-private partnerships to develop two industrial complexes in Far Eastern Russia, including the 3,000-MW Boguchanskaya hydroelectric project (HNN 5/16/07) and the 2,500-MW Timpton River cascade. (HNN 4/25/07)

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