Moscow, 30 January 2009. OJSC INTER RAO UES and Cuba's state-run business entity UNION ELECTRICA have agreed to set up a joint venture to implement thermal and hydro generation projects. An agreement to this effect was signed in late January by Evgeniy Dod, Chairman of the Management Board of the Russian energy company, and Raul Garcia Barreiro, deputy director of UNION ELECTRICA.

Both OJSC INTER RAO UES and UNION ELECTRICA find that a joint venture is the best arrangement for doing business together on a long-term basis. Recommendations for such a model of interaction between the two companies were developed in the wake of the visit to Cuba by OJSC INTER RAO UES working team in October 2008.

The joint venture's pilot project will be to upgrade and extend the existing facilities of the Máximo Gómez Heat Power Plant (installed capacity 600 MW) in the town of Mariel. The main tasks of the joint venture include station management; upgrading of existing, and engineering of new, power-generating units; and supply of equipment and required materials.

All the electric power generated will be sold at wholesale prices to Cuba's National Grid.

The Parties also identified promising areas for the joint venture to focus on. These include implementation of investment projects to engineer small hydro power plants, supplies of power generation equipment to Cuba, and development of grid infrastructure.