OREANDA-NEWS. October 1, 2009. 2010-2012 three-year investment program of JSC FGC UES has been formed under:

General guidelines of Development Strategy of the Unified National Electric Grid (UNEG) developed for the decennial period, (the Strategy was approved by JSC FGC UES Board of Directors (minutes No.13) on December 24, 2004;

General layout for the power industry facilities up to 2020 (the layout and on-line monitoring results were approved by Government of the Russian Federation on February 22, 2008 (decree No.215r);

Updated UNEG development scheme for 220 kV and above up to 2020 (the UNEG development scheme was approved by JSC FGC UES Board of Directors on May 15, 2008);

Agreements “On cooperation in the area of electric grids development”, which have been concluded with heads of administrations of Moscow, St. Petersburg, Tyumen,  West Siberia, Krasnodar Region and other regions of the Russian Federation;

Adjusted data on the scheduled commissioning of generation capacities.

The Company’s investment program was considered and approved at the meeting of the Russian Government on September 15, 2009.

2010-2012 investment program of JSC FGC UES is aimed at the following top-priority tasks:

Development of the Unified National Electric Grid to ensure its reliability;

Implementation of Agreements concluded with administrations of the regions to provide power supply for consumers;

Delivery of capacity from power generating units being commissioned at NPP, HPP and TPP;

Renovation of the company’s grid assets;

Create technological infrastructure for the competitive energy and capacity market.

Amount of financing for 2010-2012 investment program comprises RUR 519.4 bln. The investment program will be financed by JSC FGC UES own funds, funds received from additional issue of shares, federal budget funds (including funds allocated for “Economic and social development of the Russian Far East and Trans-Baikal for the period to 2013” Federal target program and Program for electric grids development in the Sochi region), funds received from sale of JSC RAO UES of Russia assets. Funds received from technical connection fee, loans and credits will be channeled for JSC FGC UES investment program as well.

The maximum amount of finance comprising RUR 105.8 bln will be channeled for renewal of fixed assets of the grid complex. It is planned to allocate RUR 81.5 bln. to increase power supply reliability in Moscow, St. Petersburg and Tyumen. RUR 77.7 bln. will be channeled for construction of the facilities delivering capacity from power plants. The Program for the development of Sochi region electric grids, which will secure construction and exploitation of the Olympic sport objects including power demand from the related objects, will be financed in the amount of RUR 15.3 bln., development of grids in the Russian Far East will be provided in the amount of RUR 29.8 bln. In total, JSC FGC UES investment program stipulates for commissioning of 32,232 MVA of transformer capacity and 8,419 km of transmission lines for the period from 2010 to 2012.

Investment program for 2009

JSC FGC UES investment program for 2009 is a part of the three-year investment program and provides priority projects of construction and reconstruction of the electric grid facilities, lifting of grid restrictions on new consumers’ connection to grids, capacity from power projects to the unified energy system of the country.

In 2009 JSC FGC UES plans to put into operation 9 608 MVA of transformer and 2 230 MVAr of reactor capacity, construct 1 507.7 km of transmission lines pursuant to the investment program.

The total amount of finance necessary to JSC FGC UES investment commitments in 2009 comprises 156 bln rubles, which exceeds 2008 indicator (136 bln rubles) by almost 15%.

The investment program provides the multiple financing package:

Own funds of the company – 41 426.5 mio rubles;

Federal budget funds (through placing additional shares’ issue) – 50 595 mio rubles;

Funds provided from asset sales – 39 640.5 mio rubles;

Funds received from payment for technical connection – 24 338 mio rubles.

More than 8.7 bln rubles will be channeled for construction of new energy facilities and increase in power supply reliability of the Moscow region, St. Petersburg - over 13.7 bln rubles, Western Siberia – over 10.3 bln rubles, Ural – over 3.4 bln rubles, Krasnodar Territory – more than 9.3 bln rubles.

In 2009, 18.8 bln rubles will be allocated for construction of facilities providing capacity from generating stations. It is planned to appropriate more than 10 bln rubles to projects aimed at developing technological control and informatization, as well as to the additional purpose-oriented programs.