The agreement sets out the key parameters of cooperation between RusHydro and the Saratov region that will include the overhaul of hydro units at the Saratovskaya hydropower plant and joint construction with Voith Hydro of a hydropower equipment manufacturing plant in Balakovo.

The total investment in the joint venture of RusHydro and Voith is expected to be around EUR50M, with sales of the plant estimated at EUR500M. The first significant order for the JV will be production of hydroelectric equipment for Saratovskaya hydropower plant. In future, the plant may produce equipment for other hydropower plants of RusHydro and other market participants.

The 13-year overhaul of Saratovskaya hydropower plant will involve the replacement of 21 vertical Kaplan turbines with hydro turbines of a new generation and one hydro-unit. The new turbines are expected to dramatically increase the ecological safety of the power plant.

The government of the Saratov region in turn will give a comprehensive support to the companies for these projects. Namely, the administration will provide a site for the plant and ease the process of acquiring all the necessary permits for the land use. The government also pledges to reduce lease payments for the project site, and work out other measures fostering the investments by the parties through decrease of profit tax and lower property tax throughout the projects’ payback period.

RusHydro and Voith Hydro signed a cooperation agreement in June 2011, at the St. Petersburg International Economic Forum. Voith pledged to provide investments, technical expertise and know-how for the joint venture.