Results of the Board of Directors on April 29, 2015
JSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on April 29, 2015.
The Board of Directors commissioned Evgeny Dod, Chairman of the Management Board – General Director of RusHydro, to provide for the following by June 30, 2015:
The Board of Directors approved the list of investment projects, being implemented or planned for implementation in terms of the investment program of RusHydro, earmarked for technological assessment and price audit in 2015-2016.
The list of projects includes comprehensive reconstruction of transformers of the Votkinskaya HPP, comprehensive replacement of turbines and hydro units of the Nizhegorodskaya, Chirkeyskaya HPPs, turbines of the Maynskiy hydro complex and hydro units of the Zeyskaya HPP.
In accordance with the Regulation on technological assessment and price audit of major investment projects of RusHydro the list includes the facilities with estimated cost of RUB 1.5 bn or more, including projects financed without budget funds. The approved list includes projects, which implementation is scheduled to start in 2015 and 2016.
The Board of Directors commissioned Evgeny Dod, Chairman of the Management Board – General Director of RusHydro, to provide for the following:
The unified treasury of RusHydro will be created to centralize control over cash flows, manage liquidity and financial risks in accordance with the government’s decree. The main responsibilities of the unified treasury will be:
The Board of Directors approved termination of RusHydro’s participation in JSC Sibenergosbyt through carve-out of 100% shares at total price of RUB 10.5 mn in favor of JSC ESC RusHydro (100% subsidiary of RusHydro, that unites power retail companies of the Group). The price of the stake has been determined by the independent appraiser based on analysis of market conditions.
In terms of implementation of BEMO project several long-term sale and purchase of electricity and capacity agreements will be signed in the nearest future. JSC Sibenergosbyt will act as an independent power retail company in terms of this project, being a tax resident of Krasnoyarsk region, a region where BEMO operates. Consolidation of Sibenergosbyt into a unified system controlling power retail companies of RusHydro in the pricing zones through ESC RusHydro will provide for optimization of corporate governance costs.
The Board of Directors approved the amended Provisions on the procurement policy of RusHydro.
The document was developed in compliance with the recent changes in the Russian legislation and provides for increasing transparency of procurement processes, as well as includes the government’s guidelines related to procurements from small and medium businesses.
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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