The Japanese Hitachi and TransMashHolding, CJSC (TMH) will establish a Russian-based joint venture for production of traction systems for passenger railway transport. The document was signed on the margins of the Eastern Economic Forum. The total list of Russian-Japanese arrangements was distributed following the negotiations between the Russian President Vladimir Putin and the Japanese Prime Minister Shinzo Abe.
AndreyShipelov, Director General of RT-Invest (Rostec subsidiary), told at the TPP project presentation that Hitachi Zosen Inovaparipassu with Rostec subsidiaries would invest the construction of waste incineration power plants in the Moscow region and Tatarstan estimated at RUB 127 bln. and would acquire the equity of the companies constructing waste TPPs in future.
During the tender in June, AGK-1 and AGK-2, Rostec subsidiaries, gained the rights for construction of four thermal power plants incinerating waste with the power of 70 MW in the Moscow region and one with the power of 55 MW in Tatarstan.
Hitachi Tver launched a blank production shop for sheet metal cutting and bending for the manufacture of arrows, turntables, etc. The new workshop costed 500 million rubles, the total investment in the Russian production of Hitachi is about 2.5 billion rubles. The localization level in the plant is about 20%.
On 19 June 2015, a memorandum of cooperation was signed between the Moscow Region Government, Russian State Corporation Rostec and Hitachi ZosenInova AG at the St. Petersburg International Economic Forum. The agreement envisions the establishment of a comprehensive waste-to-energy system. Rostec subsidiary RT-Invest will be implementing the project.
The memorandum was signed by Rostec CEO Sergey Chemezov, Moscow Region Governor Andrei Vorobyov, and Hitachi Zosen Inova AG CEO Franz-Josef Mengede.
The project will involve the construction of modern incineration plants for municipal solid waste (MSW) which can be used to generate energy and heat. The parties will work together to develop the zero-waste-to-landfill concept for the Moscow Region. Incineration plants based on advanced processing technologies are environmentally friendly. What is more, they even help solve existing problems. The present-day systems of gas treatment and capturing toxic substances are dozens of times more efficient than they were several decades ago. The cumulative investment in the project will amount to some RUB 400 billion (around $6.3 billion).
Hitachi Zosen Inova and RT-Invest will perform engineering tasks and supply the turnkey incineration technology. RT-Invest will ensure favourable financing conditions. A Swiss-Japanese company will assist PT-Invest in obtaining vendor financing and insurance coverage from the Swiss Export Risk Insurance (SERV).
After the facilities have reached their designed capacities, their total revenue is expected to reach as much as RUB 104 billion (around $1.6 billion) annually, which will make 3% of the target GRP of the Moscow Region for the corresponding year. The tax revenues associated with the project and earned by budgets at every level could amount to (on average, per annum) RUB 23 billion ($360 million), or some 5% of the regional consolidated budget revenues. The project does not envision any budget payments or subsidies. It is expected to create 2500 new jobs.