OREANDA-NEWS. Last Friday, October 26, UES board approved and corrected investment programs and features of some generating companies’ additional emissions, the Veles Capital analytic department informs.

WGC-1. Volume of financing for investment projects of company through additional emission was upgraded to 1.9 bn USD. The enhancement of the investment program was related to the fact that it included a project on construction of a new steam-to-gas power unit with 325-450 Mwatt of output, which is to be installed at Urengoyskaka HPP. At that, expansion of the investment program is also related to ongoing technical re-armament of Kashirskaya HPP power unit. Due to this, the volume of additional emission is planned to be expanded to 50.4% of WGC-1 authorized capital before offering and 33.51% of authorized capital will be added after the offering.

TGC-10. Investment program of TGC-10 was added with a construction project of the fifth power unit of Tumenskaya heat and power plant 2. The company previously expected to get 1.3 bn USD with an additional emission, whilst now this value was upgraded to1.8 bn USD. The maximum quantity of additional stock by TGC-10 before offering was upgraded to 136.55% of current authorized capital of TGC-10 and 57.73% of added capital.

Management board also decided on some issues related to reformation of power distribution companies. Yantarenergo in particular, was decided not to be included in IDGC, due to the fact that companies still have not been divided by the type of activity. Yantarenergo will be handed over directly to IDGC Holding, which will be separated from UES summer 2008. Holding’s board also approved of formation of IDGC upon power-network assets of Moscow and the Moscow Region. In order to do so, MOESK (Moscow United Power Network Company) and MGESK (Moscow City Power Network Company) must be united. Apart from this, Moscow’s IDGC will conduct additional emission on behalf of Moscow Government after those companies are unified, purchase of shares will be made with municipal network assets. Hence, Moscow is to get about 25% of Moscow’s IDGC. Formation features of IDGC of the Center and Privolzhye were also confirmed, with formation features of IDGC of North-West and IDGC of Siberia, given features are an exchange rate of shares of RNC (Regional Network Company) into IDGC's on basis of previously published deals.

Apart from this, UES board agreed that it is required to separate Nurenergo (operating in the Chechen republic through IDGC of North Caucasus). Specially created Chechenenergo will be included in the said IDGC instead, to which network assets of Nurenergo will be sold. Nurenergo itself may become a generating company in the future.