OREANDA-NEWS. Nikolai Fyodorov, president of the Republic of Chuvashia, and Nikolai Yemelyanov, mayor of Cheboksary, held a meeting with IES-Holding President Mikhail Slobodin and other top managers of the company. The conversation dealt predominantly with IES-Holding's plans for developing generation in the republic. Mikhail Slobodin informed Nikolai Fyodorov about the results of the additional share issue of OJSC Territorial Generating Company No 5 (TGC-5) which operates inter alia in the Chuvash Republic.  

On 28 May, 2007, the TGC-5 Board of Directors passed a decision to place additional shares of the company in favour of the strategic investor, IES-Holding. The total interest of IES-Holding in TGC-5 will more than double from 19% to 41% as a result of the additional issue. When TGC-5 is spun off from RAO UES of Russia, Integrated Energy Systems will become the owner of the largest shareholding in the company.

TGC-5 raised an additional 5 billion as a result of the additional issue, Mr Slobodin told journalists after the meeting. The money will, inter alia, be used to develop generation in Chuvashia. While answering questions regarding the TGC-5 investment programme, the president of IES-Holding noted that several options associated with growing electric capacity of heat and power plants in the Chuvash Republic need to be considered, but all the drafts require serious technical and economic analysis.

"Speaking about specific plans without having a feasibility study means speaking about chimeras," he emphasised. "We are facing tasks that were discussed both with RAO UES of Russia and the Chuvash president," emphasised Mr Slobodin. "Everything will be studied in detail. By the end of the year, we will be able to speak about absolutely concrete figures and projects."

By purchasing the additional shares of TGC-5, the company made a logical step in terms of expanding its presence in generation, according to the IES-Holding president. "We are establishing an energy corporation that will be among the leading corporations in Russia in terms of energy and providing energy-related utilities," he explained.