December 23, 2016. Moscow, Russia.
PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY)
announces that the Company's Board of Directors held a meeting on
December 23, 2016.
***
The Board of Directors approved RusHydro’s
business plan for 2017 incorporating Cost optimization plan based on
independent external audit of the Company and subsidiaries’ costs.
The Board of Directors approved RusHydro’s
investment program for 2017 and planned investment projects of PJSC
RusHydro and new construction projects of subsidiaries. The Board of
Directors reviewed Company’s business plan including investment
program for 2018-2021.
RusHydro’s 2017-2021 investment program provides
for financing of RUB 167,362.06 mn and commissioning 695.48 MW of new
electrical and 687.80 GCal*h of heating capacity. Construction of
priority projects in the Far East (Yakutskaya TPP-2 (first phase),
CHP in Sovetskaya Gavan’, Sakhalinskaya TPP-2 (first phase)) is
approaching completion. Planned financing volume of these projects
for 2017-2018 is RUB 28,395.69 mn, with commissioning of 433.48 MW
new electrical and 687.80 GCal*h of heating capacity.
In 2017, RusHydro is planning to finance
investment projects, implemented by Company’s subsidiaries as well
as R&D activity in total amount of RUB 60,990.84 mn, including:
Ust’-Srednekanskaya HPP in the amount of
RUB 10,367.48 mn (commissioning of 142.5 MW in 2018);
Boguchanskaya HPP in the amount of RUB
1,814.79 mn in 2017 for construction completion (commissioned in
2014);
Gotsatlinskaya HPP in the amount of RUB 52.98
mn with project completion in 2017.
Zaramagskye HPPs in the amount of RUB
23,297.75 mn (commissioning of 342 MW
in 2018);
Zagorskaya PSHPP-2 in the amount of RUB 5,000
mn. Construction completion is planned for 2020 with commissioning
of two phases of 420 MW in 2019 and 2020. Full cost of construction
will be determined based on project adjustment for liquidation of
consequences of the plant’s building subsiding;
Nizhne-Bureiskaya HPP in the amount of RUB
13,327.73 mn (commissioning of 320 MW in 2017);
Zaragizhskaya Small HPP in the amount of RUB
430.83 mn for payment of guaranteed delayed payment to contractors
(the capacity is to be commissioned in 2016);
Ust’-Dzhegutinskaya Small HPP in the amount
of RUB 916.53 mn (commissioning of 5.6 MW in 2018);
Barsuchkovskaya Small HPP in the amount of
RUB 800.86 mn (commissioning of 5.01 MW in 2018);
Verkhnebalkarskaya Small HPP in the amount of
RUB 1,862.12 mn (commissioning of 10 MW in 2019).
Completion in 2017 of design of Small HPP in
the territory of North-Caucasus Federal District financing in total
amount of RUB 63.42 mn.
Financing of conservation of already built
objects of Leningradskaya PSHPP, construction of which is
discontinued in the amount of RUB 420 mn (RUB 240 mn per year).
Completion of construction in progress is planned for 2018 in order
to minimize maintenance costs.
R&D program in the amount of RUB 2,636,35
mn.
***
The Board of Directors approved annual procurement
program of RusHydro for 2017.
***
The Board of Directors approved the report on
execution of KPIs of RusHydro for the third quarter of 2016.
***
The Board of Directors approved and introduced as
of 01.01.2017 annual key performance indicators of the members of the
Management Board of PJSC RusHydro for the year 2017 along with
Methodology for calculation and evaluation of these KPIs. The Board
of Directors also approved key performance indicators of the
Long-Term Motivation Program of PJSC RusHydro for the first cycle for
the years 2017 - 2019 along with methodology for calculation and
evaluation of these KPIs.
With the view to implement directives of the
Government of the Russian Federation on aligning management
compensation with KPIs of Long Term Development Program (LTDP KPIs),
the Board of Directors charged Nikolay Shulginov, Chairman of the
Management Board - General Director of RusHydro, to amend the list
and methodology of the LTDP KPIs of RusHydro Group for the years
2016-2020 accordingly.
***
The Board of Directors reviewed status of
implementation of 4 priority projects in the Far East (Yakutskaya
TPP-2 (first phase), Blagoveshenskaya CHP (2nd phase), CHP
in Sovetskaya Gavan’, Sakhalinskaya TPP-2 (first phase)) as of
September 30, 2016.
***
The Board of Directors approved RusHydro’s
insurance program 2017.
The approved program provides for 2.8% reduction
of insurance costs in 2017 as compared to 2016. The reduction is
explained by optimization of the overall insurance program, reduction
of insured persons due to personnel optimization, reduced number of
vehicles employed by the Company and other efficiency enhancing
measures.
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