The Korea Western Power Corp. (KWP), a unit of the state-run Korea Electric Power Corp. (KEPCO), said Thursday that it will build a cogeneration power plant in central Russia. Under the memorandum of understanding with state-run Northern Caucasus Resorts Co., KWP will construct a 180 megawatt cogeneration power plant in a resort complex to be built in Sochi, the venue for the 2014 Winter Olympics. Cogeneration refers to the simultaneous production of heat and power. The Russian government guarantees it will cover 70 percent of the total US$300 million cost of the project, according to KWP. The agreement also calls for a joint development of coal and sea ports in Siberia and far eastern areas, said KWP. \"The deal will contribute to the bilateral partnership between Russia and South Korea in energy and resource development,\" said Kim Moon-duk, chief executive of KWP.