The execution of the investment program coordinated with the administrations of the regions will depend on the tariff for electric energy transmission for the next year.

IDGC of North-West started examination of draft investment projects proposed by the company’s branches for 2010.  

“Our task today is to fix priorities on the basis of the formed criteria for the objects in the developed investment programs of the branches for the next year. The facilities with the lowest priority will be excluded from the investment program in case the tariff for electricity transmission in 2010 that does not provide execution of the investment program to the full extent is approved”, said Deputy General Director for Investments, IDGC of North-West, Aslan Chekhoyev.

This week the investment plans of Arkhenergo and Karlenergo were discussed in detail. In the nearest week a similar work will be done with other branches of IDGC of North-West.

According to Aslan Chekhoyev, the company coordinated with the administrations of the regions of the North-West Federal District and the regional regulating bodies maximal investment programs necessary for a dynamic development of the grid complex for the total sum of 4 billion 352 million roubles (exclusive of VAT). It is planned to invest 55.9% of capital financial resources in the technical re-equipment and reconstruction; 43.8%, in new construction and expansion, and 0.4%, in acquisition of fixed assets.

“However it is a difficult question whether this volume of investments will be preserved after fixing the tariff for transmission of electric energy for the next year”, he said. “For execution of the planned investment projects it necessary to increase essentially the tariff, but, regarding the plan of the Ministry of Economic Development for the next year, this is hardly possible”. 

The company considers as most important the projects that are being executed now and will be completed in the nearest year and the socially important projects of the region. 

In particular, the priority projects in the regions serviced by IDGC of North-West are: design of construction of Tsentralnaya 110 kV substation in Arkhangelsk, construction of Severnaya 150 kV substation in Murmansk and the second launch complex in Sortavala Novaya 35 kV substation the Republic of Karelia, construction of 110 kV overhead line ‘Syktyvkar substation – Krasnozatonskaya substation’ in the Komi Republic. In the Vologda Region one of the most important projects is construction of 110 kV open distribution unit and 110 kV overhead line for provision of energy from Vologda heat power generation plant of TGK-2 JSC in the Pskov Region – reconstruction of 110 kV open distribution unit at substation No.53.

We would like to remind you that in 2009 IDGC of North-West plans to invest 2.26 billion roubles. The main sources of the investment program are own funds, mostly amortization assignments, and payment for technological connection under the concluded contracts.