Results of the Board of Directors on April 2, 2013
JSC RusHydro (ticker symbols: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces that the Board of Directors approved participation of the Company in four companies created to implement the construction of new generating facilities in the Far East: heat and power plant in Sovetskaya Gavan’, the Sakhalinskaya power plant No.2, the Yakutskaya power plant No.2 and the Blagoveschenskaya power plant No.2.
These four companies, wholly-owned by RusHydro, will be registered in Khabarovskiy region (Sovetskaya Gavan’ city), the Republic of Sakha Yakutia (Yakutsk), Amurskaya area (Blagoveschensk) and Sakhalinskaya area. The companies will exercise managerial and control functions and will be responsible for commissioning of new facilities.
The initial share capital of each company will amount to RUR 500,000 and will be increased through additional share issues in favor of RusHydro. The additional share issues will be paid by the federal funds allocated by the government to RusHydro for development of power generation in the Far East. The total value of share capital of each company will be determined after the construction documents are prepared and the cost of construction of each plant is assessed. The funds will be contributed to the share capital of the companies in accordance with the construction schedules of the facilities.
RusHydro implements the construction of power projects in the Far East: heat and power plant in Sovetskaya Gavan’, the Sakhalinskaya power plant No.2 (the 1st stage), the Yakutskaya power plant No.2 (the 1st stage) and the Blagoveschenskaya power plant No.2 (the 2nd stage), in order to strengthen the strategically important electric power industry in the region. New power facilities are aimed to add new generating capacity, meet the increasing demand for electric and thermal power, create an additional capacity margin and improve reliability of power supply. The first start-up facilities of new electric plants in the Far East with total electric capacity of 0.5 GW and thermal capacity of 563 Gcal/h are planned to be commissioned by 2016.
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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