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GE will supply equipment for Yakutskaya TPP No.2

JSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that its subsidiary JSC Yakutskaya TPP No.2 and GE Packaged Power Inc. have signed contract for supply of main equipment for the plant. GE Packaged Power Inc. will supply four 42.5 MW gas turbine units of modular design.

The equipment provider has been selected through an open tender announced by RusHydro in November, 2013. GE Group has won the tender with a bid of RUR 3.49 bn (including VAT) for the offering including equipment manufacturing and additional services (installation, fine-tuning, testing, personnel training, supply of spare parts and transportation of the units to the site). The initial tender price was RUR 4.008 bn (including VAT). As part of additional tender offer, GE has provided the most competitive bid for equipment maintenance during 20 year of service life - RUR 3.12 bn (including VAT).

According to the tender conditions the equipment will be delivered to the construction site within 19 months since contract signing. The modular design enables to minimize the amount of installation works on the site. It is planned that the contract for transportation, fine-tuning and installation of equipment as well as for personnel training will be signed in April, 2014, and the contract for supply of spare parts will be signed in October, 2014.

Construction of the Yakutskaya TPP No.2 project is in advanced stage of receiving necessary approvals. Federal Agency of Expert Assessment (FAU Glavgosexpertiza) has already approved the technical part of the project. The tenders for selection of contractors for main and auxiliary construction works are approaching completion. The plant is included in the Scheme of territorial planning of the Russian Federation till 2030, which facilitates obtaining land lots for construction.

The Yakutskaya TPP No.2 (the 1st stage) is one of four projects is one of the four projects on construction of new generating facilities in the Far East of Russia, included in the Investment program of RusHydro, implemented together with RAO ES of the East. Installed electric capacity of the plant will be 170 MW, installed thermal capacity- 460 Gcal/h. Project is planned to be completed in 2015. More information on the project and construction of other thermal power plants in Amur Region, Yakutia and Khabarovsk Region is available at: http://ria.ru/energetics_fe_multimedia/%20.

In order to provide for maximum transparency in spending of the budget funds allocated for the utilities projects in the Far East, RusHydro has developed mechanism, enabling Ministry of Economic Development, Ministry of Energy and the Audit Chamber to monitor the projects in real time regime. The transparency is provided by system of isolated accounts to be opened by Sberbank for each participant of the construction project. Engineering companies, selected by Sberbank via tenders will provide independent price and technological audit of each project. Additional information of the transparency provisions is available at: http://www.rushydro.ru/activity/razvitie_energetiki_dalnego_vostoka

The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to RusHydro and its operations.
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