JSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on December 16, 2013. *** The Board of Directors approved the list of the Company’s insurers for 2014: No. | Type of insurance | Insurer | 1 | Property insurance | JSC SOGAZ | 2 | Insurance against construction and assembly risks | Ingosstrakh | 3 | Construction liability insurance. Voluntary liability insurance of property owner. | JSC SAK ENERGOGARANT | 4 | Voluntary medical insurance | SK Allianz | 5 | Accident and sickness insurance | SK Allianz | 6 | Mandatory liability insurance of hazardous facilities owners from damage caused by the accidents | JSC AlfaStrakhovanie | 7 | Terrorism general liability insurance | JSC SOGAZ | 8 | Mandatory liability insurance of vehicle owners | JSC SAK ENERGOGARANT | 9 | Voluntary liability insurance of vehicle owner | JSC SAK ENERGOGARANT | 10 | Auto insurance | JSC SAK ENERGOGARANT | 11 | Voluntary liability insurance of ship owner | JSC SAK ENERGOGARANT | 12 | Water carriers insurance | JSC SAK ENERGOGARANT | 13 | Directors’ and officers’ liability insurance | Ingosstrakh |
*** The Board of Directors approved the Insurance Program of RusHydro for 2014. The insurance coverage expenses for the next year increased by 0.5% according to the document. The slight increase in insurance expenses is driven by the coverage extension, increase in the Company’s assets, insurance cost and expenses for additional health insurance of employees. *** The Board of Directors approved RusHydro’s procurement plan for 2014. Earlier the procurement plan was recommended for approval by the management of the Company. The procurement plan was developed in compliance with the latest changes in Russian legislation and is aimed to increase the transparency and control of procurement process. The Board of Directors commissioned Evgeny Dod, Chairman of the Management Board of RusHydro, to establish within 45 days an advisory body responsible for examination of the procurements efficiency. *** The Board of Directors approved the amendments to the decision on issue of series 09 and 10 bonds in the amount of 20 mn with par value of RUR 1,000 each and total value of RUR 20 bn, and also approved the amendments to the securities Prospectus. The amendments provide for extension of bonds placement period for one calendar year till December 27, 2014, following changes in the legislation on securities market. This extension will allow the Company to place bonds timely in case of favorable market conditions in 2014. Raising debt up to RUR 40 mn through issues of series 07-10 bonds of with par value of RUR 10 bn each and the securities Prospectus were approved by the Board of Directors in October 2012. In February 2013 RusHydro placed series 07 and 08 bonds in total amount of RUR 20 bn to partially repay in November 2013 the RUR 40 bn loan secured from Sberbank of Russia. *** The Board of Directors commissioned RusHydro’s representatives to approve the agreements with general contractors and supplier of the equipment for construction of new generating facilities in the Far East at the Annual General Meeting of shareholders of CJSC TPP in Sovetskaya Gavan’, CJSC Blagoveschenskaya TPP, CJSC Yakutskaya HPP No.2. The general contractors and supplier of the equipment will be determined based on the results of tenders in December 2013. The payment for services of the general contractors and suppliers of the equipment from the federal funds, allocated by the government in accordance with the President’s decree, will start after all necessary examinations and approvals. As of now, Glavgosexpertisa has already approved the whole package of design documentation for TPP in Sovetskaya Gavan’ and Blagoveschenskaya TPP. Independent technological assessment and price audit of the Blagoveschenskaya TPP is now completed. Independent technological assessment and price audit of the TPP in Sovetskaya Gavan’ project is planned to be completed in December. The technical part of project documentation for the Yakutskaya HPP No.2 construction project has been approved by Glavgosexpertisa, the independent audit of the project is completed. In June 2013, in order to execute the President’s decree on further development of RusHydro the Company established four companies, wholly-owned by RusHydro, that exercise managerial and developer functions and will be responsible for commissioning of new power facilities. Since the expected price of each transaction made by CJSC TPP in Sovetskaya Gavan’, CJSC Blagoveschenskaya TPP, CJSC Yakutskaya HPP No.2 exceeds 50% of the book value of the companys’ assets, these transactions are qualified as major and should be approved by the AGMs of each company in accordance with the Federal law On joint stock companies. On December 3, 2013, the Board of Directors of RusHydro approved a new control model for construction of power facilities in the Far East of Russia. This model provides for transfer of shares of CJSC Blagoveschenskaya TPP, CJSC Sakhalinskaya HPP No.2, CJSC TPP in Sovetskaya Gavan’, CJSC Yakutskaya HPP No.2, owned by the Company, in trust to RAO ES of East. The shares are ex-dividend and cannot be alienated, pledged or reassigned. Holding company RAO Energy System of East, part of RusHydro Group, is the largest supplier of electricity and heat power in the Far East of Russia. The company is responsible for operating and construction of power facilities in the region. *** The Board of Directors approved the collective agreement of RusHydro’s branches for 2014-2016 and commissioned Evgeny Dod, Chairman of the Management Board of RusHydro, to ensure signing of the collective agreements of the Company’s branches in accordance with the approved document. Current collective agreement for 2011-2013 was approved by the Board of Directors in 2010; all collective agreements of RusHydro’s branches expire on December 31, 2013.
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