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. Last Updated: 07/27/2016

$3Bln Funding for Hydro Plant

Hydro-OGK will spend 77.5 billion rubles ($3 billion) to complete within two years the biggest hydropower plant in the Far East, supplying metals producers including Peter Hambro Mining and exports to China.

The state-controlled power utility will allocate a further 23 billion rubles from next year to boost the capacity of the Bureiskaya hydropower plant to 2,000 megawatts, or the equivalent of about two nuclear reactors, Hydro CEO Vyacheslav Sinyugin said Thursday. The new supply may not keep pace with demand from new industrial customers such as miners.

"Should all the investor projects in the Amur region come on line, I feel that we could even enter a power deficit," he said at the opening of Bureiskaya's fifth power unit.

The country currently exploits just 4 percent of its 400 billion kilowatt-hours of hydropower potential in the Far East. The government is seeking to provide a stimulus to local industrial projects.