16.06.2010
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JSC RusHydro Announces a Regular Meeting of its Board of Directors

On June 16th, 2010, JSC RusHydro’s (ticker symbol: HYDR; MICEX, RTS and LSE) Board of Directors held a meeting in person.

 

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 JSC RusHydro’s («RusHydro» or the «Company») Board of Directors approved the Company’s Strategic Plan for the period till 2015. Currently, RusHydro — Russia’s largest hydro-power producer — plays a key strategic role in the Russian power sector and at the same time, represents a structure that supports operational safety for systems that are vital to Russia.

 

The document approved by the Board of Directors spells out the Company’s strategic mid-term targets. These targets include: ensuring the reliable and safe operation of facilities, upgrading energy efficiency via the stable development of power production, using renewable energy sources and increasing shareholder value.

 

During the meeting, Sergey Shmatko, Chairman of the Board of Directors and Russia’s Energy Minister, noted the high quality of document preparation and the importance of steps undertaken by the Company to enter international markets and develop its sales segment. By an order of the Chairman of the Company’s Board of Directors, a detailed plan on the Company’s construction and acquisition of international power assets will be submitted for consideration to the Board of Directors by the end of the summer.

 

RusHydro’s Strategic Plan is designed taking into account major provisions of Russia’s Energy Strategy through 2030, which was adopted by Russian Government Decree #1715-р, as of November13th, 2009, and aims to form the Company’s strategic initiatives and measures, as well as to refine mechanisms for implementing phases of the Russian Energy Strategy. The Strategic Plan has been considered and recommended for approval by the Company’s Board of Directors, based on a decision by the Strategy Committee of RusHydro’s Board of Directors, from 24.05.2010.

 

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RusHydro’s Board of Directors approved the Company’s 2010 development priorities. This document is closely connected with the Company’s strategic plans and sets out priorities in every area of corporate operations. Within the framework of developing hydro generation, priority is given to the safety and reliability of current hydro power generating objects and to implementing investment projects to construct new HPPs. The strategic plan includes a separate section on innovative developments, which encompasses designing and implementing an appropriate development program. Among the Company’s priorities are energy saving and upgrading energy efficiency, as well as developing the engineering, scientific and design complex. In the nearest future, an important component in the Company’s is increased use of renewable energy sources and the implementation of energy development investment projects using these sources. The Company’s strategic plan also envisages an increased market share, sales growth in various markets, expanded international operations, participation in law-making processes and the introduction of efficient management mechanisms.

 

Approving annual priorities is an integral part of the yearly cycle of strategic management, including: the incentive system based on key performance indicators and developing periodic reports on implementing RusHydro’s strategy. RusHydro’s 2010 development priorities have been considered and recommended for approval by the Board of Directors by a decision of the Company’s Strategy Committee, as of 24.05.2010.

 

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RusHydro’s Board of Directors approved the Company’s 2010 Business Plan and the capital investment funding and spending plan envisaged by the Company’s Investment Program. The 2010 137.06 MWT increase in installed capacity is planned through the launch of facilities following re-tooling and upgrading work (at the Volzhskaya, Zhigulevskaya, Kamskaya and Cascade of Verkhnevolzhye HPPs), completion of new construction (the Kashkhatau and Egorlyk 2 HPP), as well as by linking the major Ardon Cascade of Zaramag HPP with the Company’s Khorobrov and Eshkakon HPPs.

 

2010 total planned investments, under the Investment Program approved by the Company’s Board of Directors (Minutes #93, from 04.03.2010), is RUR 97.1 billion.

 

Earlier, RusHydro’s Management Board considered the Company’s 2010 Business Plan (Minutes #482пр, from 31.03.2010) and recommended that the Board of Directors approve it.

 

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