OREANDA-NEWS. DTEK is set to invest UAH 29.7m in social projects across seven cities and districts in Donetsk Oblast in 2013. The figure exceeds the company's social investment in the region over the past six years (UAH 28.6m). The Memorandum of Cooperation in Social and Economic Development of Donetsk Oblast between DTEK and regional authorities was signed at the International Investment Summit of Donetsk Oblast.

The document was signed by DTEK CEO Maxim Timchenko, Chairman of Donetsk Regional State Administration Andrey Shyshatskiy and Chairman of Donetsk Regional Council Andrey Fedoruk in the presence of the President of Ukraine Viktor Yanukovich and SCM shareholder Rinat Akhmetov.

“Donetsk Oblast is home to DTEK, and our energy and coal businesses are based here. We ensure their stable operations, give people jobs and contribute to the region's development. DTEK continues to fulfil its social obligations and supports socially important projects. The company's 2013 investment programme of UAH 11.6bn is one of the largest in Ukraine, and one-fifth of the investment - UAH 2.2bn - will be spent in Donetsk Oblast. In 2012, DTEK's businesses paid over UAH 3bn in taxes to different budgets of Donetsk Oblast,” noted DTEK CEO Maxim Timchenko. “DTEK is interested in a sustainable development of its business, so we contribute to the development of the cities and towns where our employees and their families live. In 2013, DTEK will spend about UAH 30m on social projects in Donetsk Oblast, which is more than it has invested over the past six years. To date, DTEK has already implemented a string of projects in energy efficiency, helped to set up local development agencies, upgraded a hospital and bought necessary equipment in Kurakhovo, repaired a swimming pool in Kirovskoye town, launched Telemedicine project, and so on.”

In 2013, DTEK has been supporting programmes to develop Donetsk, Kurakhovo, Zugres, Kirovskoye, Dobropolye, Mospino and Maryinsky district. The main areas of the investment programme are:

energy efficiency - UAH 14.8m;

development of social infrastructure - UAH 7.5m;

health care - UAH 5.1m;

development of business environment - UAH 1.7m;

community engagement - UAH 0.6m.

The largest projects DTEK started off this year include

gas infrastructure development in Kurakhovo - UAH 19.4m in 2013-2015;

heating supply refurbishment in Zugres - UAH 5m in 2013-2014;

teaching Energy Efficient Schools programme to school children - UAH 3.7m in 2013-2014;

developing social entrepreneurship - UAH 1m in 2013;

Our Town in Our Hands project - UAH 1.5m in 2013.

Eight schools of Donetsk Oblast will join DTEK's project, Energy Efficient Schools, already rolled out in Kiev and Dnepropetrovsk Oblast to give children knowledge and instil energy-efficient behaviour. This year Donetsk school children have started an extracurricular course, Heat supply and heat saving principles, and participate in project contests for senior students to improve energy efficiency of schools. Children's ideas will help schools to save over UAH 300,000 a year on energy bills.

As part of the project to establish local development agencies, DTEK has set up three agencies in Kurakhovo, Zugres and Dobropolye in 2013. The initiative seeks to trigger a self-development mechanism in the cities and towns and encourage the residents where DTEK's businesses are based to foster SME development and attract outward investment for creating new jobs.

DTEK also rolls out a project to support social entrepreneurship in Zugres and Dobropolye to boost their competitiveness and economic potential. In 2013, the company has delivered a series of master classes where the local government, local development agencies and NGOs of the towns learned about the international expertise. DTEK partnered with East Europe Foundation and a local association, Socio-Economic Strategies and Partnerships, to set up a special-purpose fund of reimbursable interest-free loans to support business plans submitted by entrepreneurs from the project's target cities and towns.

In addition, the company rolls out the Our Town in Our Hands project in the cities and towns of Donetsk Oblast where DTEK operates. The project announced a contest where local citizens can submit projects to improve their residential areas. In 2013, DTEK has allocated more than UAH 1.5m to implement the best ideas generated by the local citizens.

In 2012-2013, DTEK signed similar memorandums of cooperation in social and economic development with Lugansk, Dnepropetrovsk and Ivano-Frankovsk Oblasts, totalling UAH 100m.

Profile

DTEK is the largest Ukrainian energy company and belongs to System Capital Management (SCM) wholly owned by Rinat Akhmetov. DTEK's Chief Executive Officer is Maxim Timchenko. DTEK employs 140,000 people.

Electricity is the main product of DTEK. The company operates ten thermal power plants and two CHP plants with a total installed capacity of 18GW; one 200 MW wind farm, 5 electricity transmission and sales companies providing services to over 5.2 million customers, both individuals and legal entities, 31 coal mines and 13 coal preparation plants as well as oil and gas production facilities.

In 2012, DTEK's power generating plants produced 51.4 TWh and purchased 53.9 TWh in the WEM to supply to consumers. The company extracted 39.7 million tonnes of coal and processed 27.7 million tonnes of coal. DTEK exports energy to 6 countries and coal to 36 countries of the world.

The company generated UAH 82.5 billion in consolidated revenue and UAH 5.9 billion in net profit in 2012.