30.04.2020
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Results of the Board of Directors meeting on April 29, 2020

April 30, Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on April 29, 2020.


The Board of Directors approved updated provisions of the following internal documents:

  • PJSC RusHydro’s insider policy;
  • PJSC RusHydro’s insurance protection;
  • Audit Committee of PJSC RusHydro’s Board of Directors;
  • PJSC RusHydro’s internal audit policy.


The documents comply with local and international best practices. They have been prepared in accordance with the latest legislative requirements and aimed at continuous development of the Group’s corporate procedures.


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The Board of Directors has assigned Nikolay Shulginov, Chairman of the Management Board – General Director of RusHydro to make amendments to the Group’s local regulations covering the procurement of products. The amendments include possibility of waving penalties as well as changing the price and the term of the agreement in 2020 had the supplier or responsible party breached the agreement following the consequences of the spread of new coronavirus infection.


*Currently high-alert regime is enacted in all regions of the Russian Federation and non-working days are in effect until April 30, 2020. The majority of businesses have halted operations. The consequences may result in shifting of terms or non-fulfillment of contractual obligations before PJSC RusHydro.


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The Board of Directors took into consideration preliminary report on work performance at Zagorskaya pumped storage hydropower plant No. 2 (PSHPP-2) and approved the action plan for 2020-2023. The Board of Directors has assigned Nikolay Shulginov, Chairman of the Management Board – General Director of RusHydro to semiannually inform the Board of Directors on the progress made.


On December 24, 2018 the Board of Directors approved the proposal of the Management Board to begin implementation of measures, aimed at levelling of the Zagorskaya PSHPP-2 building. Preparation works for levelling of the building are currenty under way. Once completed, the drilling works and subsequent installation of cement tubes will take place after which specially designed solidifying fluids will be pumped beneath the basement platform of the building. Levelling of the building is on schedule for completion in 2022 after which decision will be made on further actions.


The project on levelling of the building has been developed by Hydroproject Institute, RusHydro Group’s subsidiary. TonnelGeoStroi, a company specializing in construction of utility networks and underground facilities, is responsible for all the works. The company has substantial experience in solidifying foundations of structures and has been chosen to carry out the project following competitive tender.


In addition to levelling of the building, companies responsible for completion of construction of lower retaining reservoir and auxiliary roads will be selected in 2020. Higher retaining reservoir’s and penstocks will be enforced as well.


*Construction of the 840 MW Zagorskaya PSPP-2 is carried out in the Moscow region near operating Zagorskaya PSPP. In September 2013, due to deficient functioning of the counter-seepage system, subsiding of the building of the plant under construction took place. Currently, the building has been stabilized and survey demonstrated that no damage impeding levelling of the building and further completion of construction has occurred.


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The Board of Directors approved the report on execution of RusHydro Group’s Innovative Development Program for 2019.


Funding of the Innovative Development Program in 2019 amounted to RUB 483.3 mn. A total of 28 bids were reviewed, all through “single window” system, and five were chosen by subdivisions for possibility of implementation or application in R&D at RusHydro Group.


RusHydro has completed procurement of innovative state-of-the-art locally manufactured equipment for RUB 312.03 mn, out of which RUB 239 were from small and medium-sized businesses.


The innovative development integrational KPI under which PJSC RusHydro is being evaluated by controlling authorities has been 95% completed as compared to the plan figure of 85%.

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