Signing of Contract for Beloporozhskaya Hydropower Station Project

A few days ago, SINOMEC signed the contract for Beloporozhskaya Hydropower Station Project, the first project financed by the BRICS New Development Bank. SINOMEC and the Russian Direct Investment Fund will jointly invest in the project and conduct its constructionand operation. The project is not only the first project in Russia financed by the BRICS New Development Bank, but also the first project approved in the BRICS countries in a short time with a reliable financing partner. This practice is a breakthrough in the world.

According to TassRussian News Agency, a contract was signed for investment, construction and operation of Beloporozhskaya Hydropower Station Project on October 11, 2016, with the President of the Republic of Karelia, the Deputy Minister of Energy of the Russian Federation and the Vice President of the BRICS New Development Bankattending the signing ceremony. On the same day, the Eurasian Development Bank, the Northern Water Company and the International Investment Bank (МИБ) signed a financing contract for Beloporozhskaya Hydropower Station Project. SINOMEC and the Russian Direct Investment Fund are equity capital investors. The projecth as a total investment of 11.8 billion rubles, and the investment model is the first in Russia.

With the launchand implementation of the “Belt and Road” initiative, SINOMEC is grasping the needs of the countries along the “Belt and Road”, taking advantage of China’s rapid development, and actively exploring the infrastructure market in each of the republics of the former USSR for cooperation opportunities and partners along the direction of the China-Mongolia Economic Corridor. In order to make the project successful, the company has organized business and technical personnel to visit Russia for many times since March 2016. During the follow-upand negotiation process of the project, the Russian side expressed a high degree of recognition for SINOMEC’s efficient decision-making mechanism and work efficiency as well as the professionalism of the employees. After several months of technical demonstration and negotiation, both parties finally reached a consensus that SINOMEC would invest in the project and undertake the EPC project.

SINOMEC will take advantage of the project cooperation to give full play to the advantages of the energy industry platform. Through “going out and bringing in”, SINOMEC will continue to seek and participate in international cooperation and contribute to effectively solving the overcapacity problem in China.