16.04.2021
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Results of the Board of Directors meeting on April 14, 2021

April 16, Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on April 14, 2021.


The Board of Directors approved PJSC RusHydro’s business plan and investment program for 2021 as well as RusHydro Group’s consolidated business plan and consolidated investment program for 2021-2025 and took into consideration the Company’s business plan and investment program for 2022-2025.


The Group’s investment program for 2021-2025 includes commissioning of 1,851.77 MW of new electric capacity, 2,681.55 GCal/h of heat capacity, construction and modernization of 135.23 km of heat networks and 7,794.33 km of power lines.


In accordance with the Comprehensive plan of modernization and expansion of trunk infrastructure for the period up to 2024 approved by the Government of the Russian Federation (decree No. 2101-r from 30.09.2018), the investment program includes construction of the following projects: Khabarovskaya CHP-4, Artemovskaya CHP-2, second phase of Yakutskaya GRES-2 modernization of Vladivostokskaya CHP-2, 110 kV Pevek-Bilibino power lines (both phases) as well as project documentation for expansion of Neryungrinskaya GRES and Partizanskaya GRES.


During 2021-2025 RusHydro Group plans to complete construction of the first phase of 110 kV Pevek-Bilibino power lines, finalize construction of Ust-Srednekanskaya HPP and four small HPPS (Krasnogorskaya 1 and 2, Bashennaya and Psygansu). Financing of the investment program amounts to RUB 517.7 bn (incl. VAT). The investment program is balanced from the point of view of financing sources.


PJSC RusHydro’s investment program for 2021-2025 includes financing of construction of new generating capacities, rehabilitation and modernization of existing hydropower facilities to improve safety and reliability for RUB 310.1 mn (incl. VAT). The investment program includes commissioning of 1,477.04 MW of electric and 2,617.3 GCal/h of heat capacities. In the course of five years, the Company will bring online 185.84 MW of additional electric capacity excluding construction of new facilities.


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The Board of Directors the annual KPIs of the members of PJSC RusHydro’s Management Board for 2021 and the KPIS of PJSC RusHydro’s long-term motivation program.


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The Board of Directors took into consideration RusHydro Group’s draft consolidated investment program for 2022-2026 with updates to 2021 including the sources of financing and preliminary approved PJSC RusHydro’s draft investment program for 2022-2031 as well as updates for 2021. The Board assigned Viktor Khmarin, Chairman of the Management Board – General Director of RusHydro to present the approved draft investment program to the Ministry of Energy of the Russian Federation.


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The Board of Directors approved investment projects within the consolidated investment program of PJSC RusHydro for public technological and price audit in 2020-2021 including modernization and relabeling of equipment at Chirkeyskaya, Irganayskaya and hydropower plants and construction of the second phase of Neryungrinskaya GRES, Artemovskaya CHPP-2 and expansion of Partizanskaya GRES.


The Board of Directors approved the report on public technological and price audit of the Group’s investment projects for 2020.


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The Board of Directors took into consideration information on investments projects with capital expenditures exceeding RUB 10 bn in the Group’s consolidated investment program for 2022-2026 with updates to 2021.


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The Board took note of the results of the Ministry of Energy of the Russian Federation’s annual on-site audits of the Group’s facilities.


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The Board of Directors took into consideration the preliminary report on execution of additional works at Zagorskaya PSHPP-2. Drilling of additional boreholes and pumping specially designed solidifying fluids into them is currently under way. Levelling of the building is on schedule for completion in 2022 after which decision will be made on further actions.


The 840 MW Zagorskaya PSPP-2 is located in the Moscow region near Zagorskaya PSPP. In September 2013, due to deficient functioning of the counter-seepage system, subsiding of the building of the plant under construction took place. In December of 2018, a decision has been made by the Board of Directors to level the building. TonnelGeoStroi, a company specializing in construction of utility networks and underground facilities, is responsible for all the works and has been chosen to carry out the project following competitive tender.


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The Board of Directors approved reorganization of JSC Malaya Dmitrovka by transferring 100% of its shares into the shared capital of LLC SNRG at a price determined by an independent appraiser.


Following the transaction, a single center will be handle operations of RusHydro Group’s office facilities allowing optimizing the Group’s structure and reducing costs. PJSC RusHydro will have full control of the new legal entity.


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The Board of Directors approved the necessary transactions to consolidate PJSC RusHydro’s quasi-treasury shares on the balance sheet of JSC Hydroinvest by purchasing them from the following controlled entities: JSC Zaramagskiye HPPs, JSC ChirkeyHPPStroi, JSC RAO ES East, PJSC Yakutskenergo and PJSC DEK.


The transaction allows to optimize the Group’s structure, settle intergroup debt, and reduce the Group’s loan portfolio. Currently the Group’s controlled entities own 0.88% of PJSC RusHydro’s quasi-treasury shares. The price of each share is equal to the weighted average price of one share on the Moscow Exchange.


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Following organizational changes in February when the Board terminated the powers of Andrey Kazachenkov and Sergei Vasilyev, the Board appointed Sergey Terebulin, deputy CEO to the Strategy, Investment and Far East Energy Development Committees.


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The Board also approved the report on PJSC RusHydro’s interested parties transactions for 2020.

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