The Board approved the conclusion of the transactions exceeding 1 % of balance sheet assets.

The Board of IDGC of the North-West, JSC approved conclusion of the contract on performance of a set of works on construction and commissioning of "Yuzhnaya" 110/10 kV transformer substation and OL 110 kV in Veliky Novgorod. IDGC of the North-West, JSC acts as the Customer; Peterburgenergostroy, Ltd. acts as the General Contractor.

The General Contractor takes obligations not later than on 30 April 2009 to execute a full set of works on construction "on a turn-key basis" and commissioning of "Yuzhnaya" 110/10 kV transformer substation and OL 110 kV in Veliky Novgorod. The limit cost of works to be performed equals 368 million rubles.

The existing "Bazovaya" substation 110/6/10 kV of Novgorodenergo branch of IDGC of the North-West, JSC does not provide reliable and uninterrupted electricity supply of a part of consumers of Veliky Novgorod - consumers of I category of the regional center and the Novgorod area. Therefore, there is a danger of initiating procedures by consumers in case of switching-off of the electric power. Thus construction of "Yuzhznaya" SB 110/10 for translation of a part of loading from substation "Bazovaya" SB-110/6/10 kV is a necessary measure.

Moreover, the Board of IDGC of the North-West approved conclusion of the additional agreement to the existing contract between IDGC of the North-West, JSC and "Baltnefteprovod", Ltd. on technological connection of 7 MW additional capacity.

According to the contract, the works have already been performed on replacement of two transformers at "Pes" SB 110/35/10 kV by transformers of greater capacity, devices of reactive capacity compensation have been installed. The additional agreement provides completion of construction of OL-110 kV at SB "Progress" that is a 35-kilometer branch line at SB Moshenskoe; cost of the project equals almost 132 million rubles.

The cost of works on technological connection under the contract in view of the additional agreement between IDGC of the North-West, JSC and "Baltnefteprovod", Ltd will be 349 million rubles.