Moscow, 26 December 2005. Two companies established in the course of reform in the Far East energy systems have completed their registration with the state authorities.
OAO "Far Eastern Generation Company" (FEGC) was registered on 19 December 2005 in the city of Neryungri, Republic of Sakha (Yakutia). OAO "Far Eastern Distribution Company" (FEDC) was registered on 22 December 2005 in the city of Blagoveshchensk, Amurskaya Region. The FEGC head office will be located in the city of Khabarovsk. The place for registration of OAO "Far Eastern Energy Company" ("FEEC") will be determined in 2006.
Pursuant to an order of RAO "UES of Russia", a Committee was established to coordinate activities aimed at implementation of the Company's Restructuring Plan. The Committee is headed by Victor Myasnik, Director General of OAO "Far Eastern Energy Management Company".
In the very near future, a Commission will be formed to support implementation the strategic goals of reform at the energy companies in the Far East IES. The Commission will include representatives of large minority shareholders. Among the Commission's responsibilities is providing support active interaction with the Administration of the Presidential Plenipotentiary to the Far East Federal District.
It is expected that FEEC, FEGC, and FEDC will begin operations on 1 January 2007. By that time, all required corporate procedures are to be completed. In particular, several shareholder meetings of the existing and new companies are to be held, managerial teams are to be formed, the new legal entities are to register with the authorities, and operational issues are to be resolved.
It is planned that OAO "Far Eastern Energy Management Company" (FEEMC) will begin performing, effective 1 April 2006, the functions of the One-man Executive Body (CEO) at OAO "Yuzhnoe Yakutskenergo", OAO "Amurenergo", and OAO "Khabarovskenergo". On behalf of FEEMC, OAO "Amurenergo" and OAO "Khabarovskenergo" will be run by their Directors General, Yuri Andreyenko and Valery Levit, as Deputy Directors General of OAO "FEEMC" in charge of those regional energos.
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* The project to restructure the energy systems in the Far East was approved by the Board of Directors of RAO "UES of Russia" at the meeting held 2 September 2005. The project seeks to raise reliability of the Far Eastern energy system, to create a system to run the region's energy sector after RAO "UES of Russia" is unbundled, to increase capitalization and investment attractiveness of the energy companies in the Far East of Russia.
The restructuring plan for the energy systems in the Far East includes a number of concurrent corporate actions.
Specifically, it is intended to establish a subsidiary of OAO "Yakutskenergo", OAO "Yuzhnoe Yakutskenergo", on the basis of the Southern energy unit of OAO "Yakutskenergo".
Simultaneously, OAO "Far Eastern Generation Company" and OAO "Far Eastern Distribution Company" will be created. Each company will have an authorized capital of RUB5 million.
In the second half of 2006, the authorized capitals of OAO "Far Eastern Generation Company" and OAO "Far Eastern Distribution Company" will be increased through issuance of additional shares. Payment for such shares will be made in the form of generation and heating grid assets, and distribution grid assets of OAO "Dalenergo", OAO "Khabarovskenergo", OAO "Amurenergo", ZAO "LuTEK", and OAO "Yuzhnoe Yakutskenergo".
In December 2006, state registration is expected of the single Holding Company—OAO "Far Eastern Energy Company" ("FEEC")—which will be formed through merger of OAO "Khabarovskenergo", ZAO "LuTEK", OAO "Amurenergo", OAO "Yuzhnoe Yakutskenergo", and OAO "Dalenergo".
** OAO "Far Eastern Energy Management Company" (OAO "FEEMC") performs the functions of the CEOs at OAO "Dalenergo", ZAO "LuTEK", OAO "Sakhalinenergo", OAO "Kamchatskenergo", and OAO "Geotherm". OAO "FEEMC" is carrying out a set of measures designed to increase the investment attractiveness of all the five companies under management, and is making preparations for restructuring of the energy sector in the Far East of Russia as a whole.
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