The international conference, held in Moscow today, went on discussing the initiatives set forth by the company’s top manager after his speech.
Sergey Titov – IDGC of the North-West Deputy General Director for Capital Construction – presented the practices of evaluating investment project cost-effectiveness, developed and introduced at IDGC of the North-West, to the international forum participants.
“We thoroughly analyze each investment project, whether large or small, and evaluate its effect on our investment portfolio,” Sergey Titov said. The company uses an industry-specific automated system to do the analysis. And a whole report is compiled by one person.
IDGC of the North-West portfolio contains 1752 projects. According to the company’s analysis system, only 99 projects are cost-effective while others are loss-making.
Cost-effectiveness is analyzed throughout project implementation, starting with planning. The company saves up to 10% of the estimated cost at the procurement phase among other things due to standard technical solutions. Calculations are also made during the commissioning phase and every three years of project implementation.
As a result, the discounted income from the 99 profitable projects exceeds the discounted loss from 1653 projects, which means that, as a whole, the investment program of IDGC of the North-West is efficient.
“Tariffs being restrained, IDGC of the North-West wants to offer a tool to facilitate further development,” Sergey Titov emphasized.