JSC "Territorial Generating Company # 2" (TGC-2) Board of Directors Public at a regular meeting which took the form of the default voting approved the parameters of the Investment Program for 2007-2011. By May 29 of the current year the Board will have been introduced to a financial model for a current year and the balance of sources for financial support of the Program.

This will be the first mid-term phase of the TGC-2 Investment Program. Overall the majority of the Investment Program activities is planned to be conducted before 2015. The amount of the Program"s first stage till 2011 will constitute RUB45, 8 billion, the amount intended for the second long-term stage is RUB155 billion. The ratification of the Program"s second phase parameters by the Board is planned for a later period. The main source of finances for the Program untill 2011 will be raised funds amounting to RUB38,3 billion including long-term credit, leases and additional share issue.

- TGC-2 Investment Program will be gradually accelerating its pace, - noted Andrey Vagner, JSC "TGC-2" Director General. - After 2011 it is planned to increase the amount of financing and launch new generating units. By 2011 the overall amount of generating capacity launched will have constituted 1145 MW, while by 2015 it is planned to add 5360 MW.

The Program comprises four main areas: fuel balance diversification, transfer of Arkhangelsk CHPPs using fuel oil for energy production to coal combustion, enhancement of technical and economic indicators on all plants through construction of advanced gas turbines and large pulverized-coal fired generation units.

The Program implementation will help the company to successfully compete on heat and electricity market, ensure its stable development and growth of its capitalization.
The implementation process had already began in all regions of the TGC-2 presence. In March of this year the first launch was carried out - a new 115MW steam turbine # 6 was put on line at the Yaroslavl CHPP-2.

Company Profile

JSC "Territorial Generating Company # 2" (JSC "TGC-2") was established in February, 2005. The Company"s Director General is Andrey Vagner. TGC-2 comprises generating capacity of 6 regions - Arkhangelsk, Vologda, Kostroma, Novgorod, Tver and Yaroslavl.

Since July 1st 2006 TGC-2 functions as a unified Company. TGC-2 operates 16 heat power stations, 8 boiler-houses, 4 enterprises of thermal networks. The aggregate electric capacity of TGC-2 enterprises is 2 582,5 MW, the installed thermal capacity constitutes 12 471 Gcal/h.