JSC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces that on December 8th, 2010 a meeting of the Company's Board of Directors was held in absentia.
JSC RusHydro's Board of Directors approved a report on the Company's achieved key performance indicators (KPIs) for Q3 2010.Three KPIs were considered: the current liquidity ratio, financing and the fulfillment of investments within the Company's Investment Program and the reliability criterion. The Board found that all performance indicators were achieved.
The Board of Directors approved amendments to the Company's Non-core Assets Register, which was adopted May 11th, 2010. The amendments update information and, in particular, reference changes in the timelines for the free-of-charge transfer of transportation infrastructure facilities from RusHydro to regional and local authorities.
The Company's Board of Directors approved the list of insurance companies chosen to provide insurance coverage for JSC RusHydro in 2011. These companies include: OJSC AlfaStrakhovaniye, OJSIC Ingosstrakh, OJSC IC ROSNO, OJSIC RESO-Garantia and OJSC Military Insurance Company.
An open one-stage tender was held to award property and life insurance contracts for the Company and its branches. Based on the tender, a number of companies were selected which can provide the most reliable and comprehensive insurance coverage. Eleven leading Russian insurance companies participated in the tender. The terms of insurance protection fully comply with JSC RusHydro's regulations. The Company intends to take out reinsurance against substantial risks on the international insurance market. As part of preparing for renewing insurance protection, the Company realized a pilot project for a surveyor's inspection of a number of the Company's HPPs, which demonstrates that RusHydro is open to both Russian and international insurance markets.
The Company's Board of Directors approved RusHydro's 2011 Insurance Protection Program.
The above-mentioned document provides for an 11% increase in insurance costs next year. This is due to broader insurance coverage of the Company's property, increased assets and additional health insurance for personnel.
Costs per insurance type have been calculated based on the rates applied by insurers that won the tender; the terms of insurance coverage meet the requirements of the Company's regulations and tender documentation.
The Board of Directors approved a Standard Collective Agreement for JSC RusHydro's branches for 2011-2013.
The current collective agreements for the Company's branches terminate December 31st, 2010. The new revision has been prepared taking into account some important assumptions, including: the need to provide for necessary personnel to commission new facilities and achieve key objectives set in production plans. To attract young specialists, a subsection has been included in the revision to provide for monthly benefits (corporate grants) paid to employees' children who make good progress in studying industry-oriented specialties at Russian vocational schools, colleges and universities.
To support national government projects and to implement the Company's socially responsible vision of supporting young families, the new revision calls for increased one-time payments for important events for the families of young employees (childbirth, marriage, child-care leave). The new revision also incorporates stricter requirements to protection employees in the case of emergencies.
The Board of Directors approved an agreement to be entered into by JSC RusHydro and OJSC FGC UES, in which the Company is interested.
The agreement will fulfill JSC RusHydro's obligations to OJSC FGC UES to repay the cost of approved permanent improvements to the outdoor switchgear (╬RU-500) at the Sayano-Shushenskaya HPP complex.
To mitigate the effects of the accident at the Sayano-Shushenskaya HPP, the ORU-500 of the power plant was leased for maintenance and operation by OJSC FGC UES' branch, MES Siberia, under a lease agreement. During this period, the grid organization (the lessee) at its own cost made improvements to the switchgear. Pursuant to the agreement, JSC RusHydro is obligated to repay the cost of the approved permanent improvements.
The Company's Board of Directors approved material terms for additional agreement No.1 to the contract dated August 19th, 2010, made between JSC RusHydro and OJSC Power Machines to manufacture and supply equipment for hydro-power units for stations No. 16, 20, 8, 7 and18 of JSC RusHydro's Zhigulevskaya HPP and to perform related work (provide services) necessary to put equipment into operation. Equipment delivery and work will be completed before December 31st, 2016.
Pursuant to the terms of the additional agreement, Power Machines will design, manufacture and deliver five new hydro-units to the power plant (in addition to nine ones being supplied under the contract) with an installed capacity of 129 MW per unit and equipment to carry out partial replacement of major units at the operating hydro-electric generators at the Zhigulevskaya HPP. In addition, Power Machines experts will provide installation supervision services and assist in putting the supplied equipment into operation.
New turbines will increase the installed capacity of each hydro-electric unit by 10.5 MW (from 115 to 125.5 MW) at designed head. The five upgraded hydro-electric units at the Zhigulevskaya HPP will increase aggregate HPP output for 52.5 MW.
The Board of Directors approved material terms for the contract between JSC RusHydro and OJSC Power Machines to manufacture and supply hydro-turbines with automatic control systems, hydro-electric generators and generator excitation systems for hydro-electric units No. 1, 2 and 3 of the Baksanskaya HPP of the Kabardino-Balkarsky branch of JSC RusHydro and to provide installation supervision services. Equipment delivery and work will be completed in February 2012.