OREANDA-NEWS. November 13, 2008. Komsomolets Donbassa Mine and Pavlogradugol, controlled by the country’s largest holding company – SCM (Donetsk) will allocate, as it was provided for, investments to the energy generation company Dneproenergo (Zaporozhye) in 2008 in the form of reimbursable financial assistance to an amount of UAH 202m.

As a press release of the power company says, on Wednesday, late October, the company’s Supervisory Board approved the respective agreement between Dneproenergo, its united trade union and investors with regard to a temporary procedure for the execution of the investment obligations under the investment agreement dated September 13, 2007.

‘Resolving this issue becomes especially important in the situation of the global economic crisis and will allow the power generation company to timely obtain the scheduled funding of actions aimed at the modernization and reconstruction of the company’s fixed assets, social infrastructure’, the press release stresses.

As reported earlier, in March this year, Dneproenergo declared its 2008 plans to use UAH 404.8m as capital expenditure, in particular: at the expense of its own funds - UAH202.8m and at the expense of borrowed funds - UAH202m.

Furthermore, the Supervisory Board charged the company’s Management Board with developing a programme of anti-crisis measures and finalizing the 2009 financial plan.

‘Studying the 2009 capex plan entailed a decision of the Supervisory Board on the finalization of the document with regard to a review of the reconstruction schedule for TPPs’ power generation units, a computation of an investment allowance, and an analysis of construction in progress’, the press release says.

Dneproenergo has also informed that the company’s Management Board just before the meeting of the Supervisory Board had already approved some anti-crisis measures aimed primarily at the tight cutting of ineffective costs, optimization of business processes, search for internal reserves to reduce the production cost of electricity and heat generation.

Besides, the Management Board appointed Chief Engineer of Zaporozhskaya TPP, Yuriy Peresypkin, Director of Pridneprovskaya TPP.