26.05.2014
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Results of the Board of Directors on May 23, 2014

JSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on May 23, 2014.


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The Board of Directors commissioned Evgeny Dod, Chairman of the Management Board of RusHydro, to:

  1. Determine 50-100 the most substantial procurement items (according to their value) of RusHydro and its subsidiaries, develop the procedure to compare them with actual value of the same procurements made in the previous periods, and approve it with the Ministry of Economic Development of Russia and the Ministry of Energy of Russia within 30 days from the date of this resolution.
  2. Cut the procurement prices of 50-100 the most substantial items (according to their value) not less than 10% of actual value of the same procurements made in 2013 reassessed for consumer price index for 2013 without reduction in quality and safety of purchased products/services.
  3. Develop and submit for the Board of Directors’ approval within 45 days from the date of this resolution the list of measures aimed at improvement of procurement policy of the Company and its subsidiaries, including:
    • Increasing the share of purchases made at auction, including electronic biddings;
    • Increasing the share of purchases from manufacturers of the relevant products/services;
    • Strengthening measures against corruption, including through revealing and eliminating schemes with participation of the affiliates;
    • Getting discounts, including on medium and long-term agreements, especially for products/services which market prices have decreased.
  4. Approve the list of measures with the Ministry of Economic Development of Russia and the Ministry of Energy of Russia within 30 days from the date of this resolution.
  5. Submit to the Ministry of Energy of Russia once in a half-year period the reports on execution of the procurement program and the procurement cost cutting results in 2014 in regards to 50-100 the most substantial items (according to their value) of RusHydro and its subsidiaries. Set the deadline for submitting the first report on September 1, 2014.

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The Board of Directors approved the amendments to Regulations on remuneration of the Management Board members of RusHydro, approved by the Board of Directors in 2010.


The Board of Directors authorized Mikhail Poluboyarinov, Chairman of the Board of Directors, to determine conditions (in accordance with the amendments to Regulations on remuneration of the Management Board members of RusHydro) and sign on behalf of RusHydro the addendum to labor agreement with Evgeny Dod, Chairman of the Management Board of RusHydro. The Board of Directors commissioned Chairman of the Company’s Management Board to make the amendments to labor agreements with members of the Management Board in accordance with the amendments to Regulations on remuneration of the Management Board members of RusHydro.


The amendments to labor agreements comply with the Federal law on amendments to Labor code of the Russian Federation.


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The Board of Directors approved the report on execution of the Company’s KPIs in the 1st quarter of 2014.


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The Board of Directors approved the agreement for information and consulting services between RusHydro and JSC ATS, qualified as interested party transaction, and determined the price of the agreement.


According to the agreement JSC ATS will make the scenario analysis of operations of the Leningradskaya PSPP within the existing wholesale electricity and capacity market model.


The Board of Directors approved the agreements between RusHydro and Lenhydroproject, qualified as interested-party transactions, and determined the price of the agreements, including:

  • Addendum No. 1 to the agreement for R&D and technological works;
  • for development of project documentation for reconstruction of technical facilities of the Irganayskaya HPP;
  • for updating and development project documentation for certain construction elements of the Mialinskaya HPP.

The Board of Directors approved a number of agreements between RusHydro and Institute Hydroproject, qualified as interested-party transactions, and determined the price of the agreements, including:

  • for development of reconstruction project of hydraulic structure of the Zagorskaya PSPP;
  • for development of construction and technical documentation for hydraulic structure of the Kamskaya HPP.

All works executed under agreements are aimed at safety improvement of hydrotechnical constructions of HPPs and decrease the risk of accidents.

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