At a Regular Meeting of RusHydro’s Board of Directors
A meeting of the RusHydro's Board of Directors took place in absentee form on December 19, 2011.
The Board of Directors has approved the list of company insurers for 2012:
The Board of Directors has approved the Insurance Coverage Programme for 2012. In accordance with the document approved, the 16.6 % increase in expenses for securing the insurance coverage is provided for the next year. The increase in insurance expenses is primarily driven by enactment of the Federal Law "On mandatory insurance of civic responsibility by owners of dangerous facilities for damage incurred as a result of an accident at the dangerous facilities". Tariffs for this kind of insurance are regulated by the government. The increase in insurance cost is also explained with insurance extended cover of company assets, increase in company assets, increased spending for additional employee medical insurance.
The Board of Directors has approved voluntary medical insurance agreement, concluded between JSC RusHydro and JSC SK ROSNO and being the interested party transaction, and has determined the agreement services ceiling price. The agreement is concluded for the period from January 01, 2012 to December 31, 2012.
The Board of Directors has approved the agreement for transfer free of charge of hydrometeorological station to and Amur Regional Center for Hydrometeorology and Ecological Monitoring (АRC), for operation of the station and provision of specialized hydrometeorological information to RusHydro. The agreement is concluded for the period from January 01, 2012 to December 31, 2012.
In 2011 JSC RusHydro branch - "Zeiskaya HPP" has acquired and installed information system of water level measurement and receiving and transferring station of water level measurements. The purpose of the system is accurate prediction of flow to the Zeyskoye water reservoir.
The Board of Directors has approved the corrected the Program of charitable and sponsorship activities in RusHydro for 2011.
The Board of directors has approved the report of the intermediate implementation results of JSC RusHydro's Business plan for 2011 with due account of 9 months of 2011 (including the Investment Program execution report).
The total actual generation and productive supply of electricity for the Company as a whole amounted 99.8 % and 100.1 % of the plan for the 9 months of the current year.
Annual financing plan for Investment program 2011 amounts 108.8 bln rubles, (including 68.8 bln rubles - from own funds, 40.0 bln rubles - from borrowed funds). The financing plan for Investment program for 9 months of 2011 is performed for 94 %.
The Board of Directors has approved the list of annual and quarterly key performance indicators of RusHydro for 2012.
The following is approved as KPI:
1. Cost management - simultaneously:
- reduction of costs due to implementation of cost management programme;
- reduction of costs for acquisition of goods (works, services) on a per-unit basis.
2. Reliability criteria - simultaneously:
- exclusion of number of emergencies exceeding the limit value in the Company and subsidiary companies;
- availability factor in the Company and subsidiary companies.
3. Level of EBITDA.
4. Execution of capacities commissioning plan and financing and development plan.
The following is approved as quarterly KPI:
1. Reliability criteria - simultaneously:
- accident rate (in relation to the previous year) in the Company and subsidiary companies;
- absence of personal injuries at the place of production with fatal result or group personal injuries, if there is a person with permanent injury in the Company and subsidiary companies generating electric energy;
- receipt (availability) of readiness certificate within the specified period for facilities of the Company and subsidiary companies.
2. Current liquidity ratio.
3. Execution of quarter schedules of financing and development of investment programme on an accrual basis year-to-date.
The Board of Directors has approved a Procedure of target price calculation for purchased goods (works, services) which are to be used for procurement activities in accordance with the RusHydro production and investment programs.
The document is developed in order to normalize process and provide correctness of procurement evaluation upon planning of RusHydro production and investment programs in the area of works on technical rehabilitation and modernization, repairs and maintenance as well as engineering surveys, design works.
The procedure is developed on the basis of applicable legislation, requirements of regulatory and procedural guidelines being in force in the area of price formation, regulations and requirements of company standards on the matters of price formation, developed by RusHydro for the purpose of realization of Program of work on standardization in the field of technical regulation. The procedure is developed in accordance with order of Investments Committee of RusHydro's Board of Directors by December 15, 2011.
The Board of Directors charged the representatives of RusHydro in the management bodies of JSC NIIES to approve a loan agreement, concluded between the institution and RusHydro, as a major transaction exceeding 50 % of the balance sheet assets of JSC NIIES.
The loan is interest-free, the maturity date is
December 30, 2012. The loan will be applied towards financing of projects being
realized within the RusHydro's innovative development programme for 2011-2015,
approved by the Board of Directors.