29.03.2019
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Results of the Board of Directors Meeting held in absentia on March 26, 2018

March 29, 2019. Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held in absentia a meeting on March 26, 2019.

 

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The Board of Directors preliminary approved PJSC RusHydro’s draft investment program for 2020-2029 and changes for 2019-2028 and took into consideration the draft consolidated investment program of RusHydro Group for 2020-2024 and 2019 (updated) as well as sources of financing and.

 

PJSC RusHydro’s comprehensive rehabilitation and modernization program will continue within the investment program by 2029 until the installed capacity of generating facilities will increase by 5 GW.

 

The investment program includes commissioning of 1.5 GW of new electric capacity and 586 Gcal/h of heat capacity as well as construction and modernization of over 182.8 km of heat and 8.25 thousand km of power lines. During 2019 – 2024 RusHydro Group plans to complete construction and commission Sakhalinskaya GRES-2, CHP in the city of Sovetskaya Gavan, Ust-Srednekanskaya HPP, Nizhne-Bureyskaya HPP, Zaramagskaya HPP-1, small HPPs (Ust-Dzhegutinksaya, Barsuchkovskaya, Verkhnebalkarskaya, Krasnogorskaya 1 and 2) and the first phase of Pevek-Bilibino.

 

Total funding of RusHydro Grooup’s investment program for 2019-2024 including priority projects in the Far East amounts to RUB 439.1 bn including RUB 233.8 bn or 53% for the Far East projects. The program includes commissioning of 436.9 MW of electric capacity and 200 Gcal/h of heat capacity. The investment program is balanced according to financing sources.

 

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The Board of directors approved the report on performing a public technological and price audit of investment projects for 2018.

 

Three projects have been audited in 2018 in according to the plan: comprehensive modernization at Volzhskaya HPP, construction of CHP in the city of Sovetskaya Gavan and construction of Sakhalinskaya GRES-2. According to the Board of directors’ decision, audit of Sakhalinskaya GRES-2 and CHP in the city of Sovetskaya Gavan will be finalized in 2019.

 

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The Board of directors approved the report on organization of PJSC RusHydro Insurance protection in 2018. Following program execution, insurance expenses have decreased after application of decreasing coefficients to insurance tariffs made possible by high fire safety standards and recertification of facilities.

 

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The Board of directors set procedures on operations with bank guarantees and determined that the Group’s individual executive body is able to terminate obligations or deny rights by bank guarantee without a separate resolution of the Board of directors when the Group’s ownership interests are protected by a new bank guarantee or an amendment to the current bank guarantee as well as certain cases when the main obligations are fully or partially fulfilled by the contractor prior to expiration of the guarantee.

 

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The Board of directors authorized Nikolay Shulginov, Chairman of the Management Board – General Director to secure PJSC RusHydro an intragroup loan up to RUB 211.74 bn in favor of JSC Chukotenergo to finance and prepare the project documentation for the second phase of two single-circuit 110kV electric lines Pevek-Bilibino not later than 2027.

 

Construction of two single-circuit 110 kV electric lines Pevek-Bilibino (construction phase No. 1) investment project, in Chukotka is implemented in connection with pending modernization of energy system of Chaun-Bilibinsky energy node because of decommissioning of Bilibinskaya NPP. Construction of OHLs 110 kV Pevek-Bilibino is aimed at development of power supply of Chukotsky Autonomous Region and stable development of the energy complex of the Far East.

 

The Board of directors approved an action plan for the Group to transition predominantly to locally manufactured software during the period of 2018-2021 and set key performance indicators for this action plan.

 

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The Board of directors authorized Chairman of the Management Board – General Director to develop and approve the Program on quality improvement of the Group’s procurement activity by 01.04.2019 and implement the Program in the Group’s controlled organizations.

 

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The Board of directors terminated the powers of Dmitriy Gvozdev, member of the Committee on reliability, energy efficiency and innovations under the Board of Directors and elected into the Committee Andrei Mayorov, Deputy General Director – chief engineer of PJSC Rosseti.

 

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The Board of directors took into consideration information on status of execution of priority projects on thermal generation construction in the Far East as of 31.12.2018.

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 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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