26 Jun 2012 07:20
June 26th, 2012
Board of Directors approved investment plan for 2012-2016
JSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces the Board of Directors on June 22, 2012 approved the non-consolidated business plan [1] for 2012-2016, including the investment plan for this period.
The investment plan provides for financing of RUR 381,830 mn [2] and capacity additions of 5,318.14 MW in 2012-2016.
The plan sees the financing of technical upgrade and reconstruction at 190,922.64 mn. The program will result in comprehensive modernization and higher safety and reliability of existing capacity and capacity additions of 344.1 MW due to new equipment installations and efficiency improvements.
The plan also provides for financing the final stages of comprehensive reconstruction of Sayano-Shushenskaya hydropower plant after the 2009 accident. This project amounts to RUR 15,031 mn and it will be complete in 2014. The financing to rehabilitate the Baksanskaya hydropower plant after an accident in 2010 will amount to RUR 1,281.14 mn. RusHydro plans to complete this project in 2012.
New capacity build will require RUR 135,739.15 mn in financing for the following projects:
- RUR 18,803 mn for 570 MW Ust'-Srednekanskaya hydropower plant in the Far East;
- RUR 45,658.6 mn for BEMO project, a joint project of RusHydro and UC RUSAL to build a 3000 MW Boguchanskaya hydropower plant and an aluminum smelter with an output of 600 thousand tonnes p.a. in Siberia;
- RUR 4,254.51 mn for 100 MW Gotsatlinskaya hydropower plant in the Northern Caucasus;
- RUR 24,034.55 mn for 840 MW Zagorskaya pumped storage no. 2 near Moscow;
- RUR 34,456.22 mn for 321 MW Nizhne-Bureyskaya hydropower plant in the Far East;
- RUR 8,532.27 mn for 160 MW Zelenchukskaya pumped storage/hydropower plant in the South of Russia.
The 2012-2016 plan sees RUR 13,272.28 mn in investment for renewables projects:
- RUR 7,587 mn for R&D and construction of an experimental Severnaya tidal plant in the Murmansk region;
- RUR 5,685 mn for small hydropower projects in the Northern Caucasus.
The investment plan provides for finalization of projects design works of Kankunskaya (cancelled) and elevation of reservoir of Cheboksarskaya hydropower plants. It also will require financing for recultivation and maintenance of projects that have been put on hold:
- an estimated RUR 11,477.28 mn for Zaramagskie hydropower plant;
- RUR 3,000 mn for Leningradskaya pumped storage;
- RUR 100 mn for Fiagdonskaya small hydropower project;
- RUR 700 mn for Verkhnebalkarskaya small hydropower project;
- RUR 97 mn for small hydropower project Chibit.
***
The Board approved the report on execution of KPIs of RusHydro in the 1st quarter of 2012.
For more information:
JSC RusHydro, Investor Relations Department
Tel. +7 (495) 225-3232 ext. 1319, 1394, 1607
ir@rushydro.ru
[2] Hereinafter the financing includes VAT (18%).
DISCLAIMER
The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. One can identify forward-looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements.
We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia and rapid technological and market changes in our industries, as well as many other risks specifically related to RusHydro and its operations.