Russia, North Korea Discussing Energy Exports

Mar 23, 2007 - Daily News Bulletin

Moscow: Russia and North Korea are discussing joint projects to build power stations in North Korea and also to organize exports of electricity from Russia to North Korea, say materials prepared for a meeting of a Russian-North Korean intergovernmental commission that is taking place on Friday in Moscow.

The materials say that North Korea is interested in the participation of Russian companies in building the second stage of the East Pyongyang Combined Heat and Power Plant that has a capacity of 100 megawatts, refurbishing the Pyongyang CHP with a capacity of 400 megawatts and refurbishing the Pukchong CHP with a capacity of 1600 megawatts that was built with the technical assistance of the former Soviet Union.

Russia's Tekhnopromexport could take part in the project if the sources of financing are determined.

A project is also being discussed to build power lines to transmit electricity from Russia's Far East to North Korea. Unified Energy System (UES) (RTS: EESR) is interested in cooperating with North Korea in the electricity sector, including implementing a joint project to build power lines between Vladivostok and Chongjin, the materials say.

The commission is planning to instruct interested organizations on both sides to draft a complex of measures to implement investment projects in electricity, and also come up with mechanisms to guarantee the return of investment in construction and to pay for supplied electricity.