JSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on September 26, 2014.

***

The Board of Directors took a note of the information on the status of implementation of four priority projects in the Far East of Russia: Blagoveschenskaya TPP (2nd stage), Yakutskaya TPP No.2 (1st stage), TPP in Sovetskaya Gavan’, and Sakhalinskaya TPP No. 2 (1st stage).

The technological assessment and price audit of the Yakutskaya TPP No.2 (1st stage), Blagoveschenskaya TPP (2nd stage) and TPP in Sovetskaya Gavan’ had been completed, the projects were approved by the Federal agency of assessment (Glavgosexpertiza). The Ministry of energy resolved to use budget funds allocated to RusHydro in late 2012 to finance the construction works and purchase of equipment. Following tendering processes JSC TEK Mosenergo, JSC Power Machines and JSC GlobalElectroService were selected as general contractors for construction of Yakutskaya TPP No.2 (1st stage), Blagoveschenskaya TPP (2nd stage) and TPP in Sovetskaya Gavan’ respectively. The construction works have already started.

The design of the Sakhalinskaya TPP No. 2 has been finalized; the technological assessment and price audit is underway. Glavgosexpertisa approved technical part of design documentation. Tender for selection of general contractor has been announced.

***

The Board of Directors approved the agreements between JSC RusHydro and JSC Lenhydroproject, qualified as interested party transactions:

§  addendum to the agreement for development of project for modernization of vibration monitoring system of hydropower units of the Bureyskaya HPP;

§  agreement for development of design documentation for comprehensive reconstruction of the Zeyskaya HPP;

§  agreement for development of project for reconstruction of 13.8 kV switchgears of hydropower units No. 1 and 2 of the Miatlinskaya HPP.

The Board of Directors approved a number of contracts and supplementary agreements between RusHydro and Hydropoject Institute, qualified as interested party transactions:

§  contract including supplement agreements for development of design documentation for comprehensive reconstruction of the Nizhegorodskaya HPP;

§  contract for geotechnical and hydrological surveys at the Zagorskaya PSPP.

These works are aimed at reliability and safety improvement of RusHydro’s hydropower facilities in terms of the Company’s investment program.

The Board of Directors approved the contract including supplement agreement for telecom and data services between RusHydro and Rostelecom, qualified as interested party transactions.

***

The Board of Directors commissioned RusHydro’s representatives at the AGM of LLC TPP in Sovetskaya Gavan’ to approve the following interrelated major transactions:

§  sale purchase agreements for steam turbines, turbine-generators, boilers and electrostatic precipitators for construction of TPP in Sovetskaya Gavan’ between JSC RAO ES of East (seller) and CJSC TPP in Sovetskaya Gavan’ (buyer);

§  novation agreements in regards to steam turbines, turbine-generators, boilers and electrostatic precipitators delivery contracts. Under these agreements JSC RAO ES of East transfers to CJSC TPP in Sovetskaya Gavan’ all rights (requirements) and obligations to suppliers in regards to delivery contracts;

§  novation agreements in regards to storage agreements. Under these agreements JSC RAO ES of East transfers to CJSC TPP in Sovetskaya Gavan’ all rights (requirements) and obligations in terms of steam turbines, turbine-generators, boilers and electrostatic precipitators’ storage.

In accordance with the President’s decree of November 22, 2012, RusHydro established four companies, wholly owned by RusHydro, to implement construction of power facilities in the Far East of Russia. In this regard, RAO ES of East transfers the equipment to CJSC TPP in Sovetskaya Gavan’, owner of construction of TPP in Sovetskaya Gavan’.

85% of the main equipment of the future plant has been already manufactured. Manufacturing works were financed by RAO ES of East.