JSC " Territorial Generating Company #2" and ING banking group (Netherlands) began discussing the possibility of issuing a credit for financing the Company Investment Program. The estimated RUB19,6 billion Investment Program till 2010 has to be approved in April of the current year by the TGC-2 Board of Directors. After the approval has been received the negotiations will be resumed.

Both sides are interested in continuous cooperation for at least for a mid-term perspective. The development of a credit scheme considering the peculiarities of specific investment projects, which TGC-2 intends to implement, is under discussion. Together with bank credits it is also possible to use other means of attracting funds, e.g. additional emission of bonds. Moreover, TGC-2 plans to organize additional share issue, the dates of this emission will be determined later on.

- Our Investment Program assumes accelerating the pace in equipment upgrade and in launching new capacity, - pointed out TGC-2 1st Deputy Director General for production Vasiliy Beliy at the meeting with banking group representatives. - Such measures will allow us to increase our market share.

In his turn, ING Global Head of Electricity Department Bram Vaynen had stressed the fact that all Russian energy companies, TGC-2 being one of them, are very appealing entities to invest in, at least due to their low credit debts.

During their visit bank representatives have been shown to Yaroslavl CHPP-2, CHPP-3, which are going to be most intensively upgraded by the TGC-2 Cental Administrative Board for Yaroslavl region within the framework of the Investment Program.

ING is one of the 5 major investment entities in Europe in terms of its market capitalization level. ING occupies the 4th position for the amount of its project financing in the sphere of Electricity in "Europe- Middle East- Africa" region. It operates in Russia since 1994 and has offices in Moscow and Kiev, as well as the representative office in Alma-Ata.

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.

The Authorized Capital of JSC "TGC-2" amounts to RUB7 117 127 045 and is spread over 700 328 533 458 ordinary shares and 11 384 171 043 preferred shares with the face value of 1 kopec. The main shareholder of the company is RAO "UES of Russia" which owns 49,18% of shares.