OREANDA-NEWS. On 10 February 2009 was announced, that in 2008 as compared with the similar period of last year a growth on the basic production figures of the company has been obtained. Volume of the services on electricity transmission has been increased to 34.3 mlrd.kW•h (+5.5% to the level of 2007).

Volume of the services on technical dispatch has been achieved to 75 mlrd.kW•h that is 4% more than the level of last year and it is connected with a growth of power generation volume. In accordance with the Law of RK No.588-II “On power industry” dated 09.07.2004, in 2008 a new kind of services on balancing the power generation-consumption has been introduced instead of the previously rendered services on power control.

Incoming

Operating income for 2008 are expected on a level of 33 276 mln.KZT, that 16.6% more of the last years figures.

The expenses during the reporting period amount to 26 672.4 mln. KZT, that 2.9% or 747.5 mln.KZT more than the similar figure of 2007.

Total income for 2008 amounts to 6 612.7 mln. KZT, that exceeds a similar figure of 2007 on 484.1% or 5246.6 mln.KZT, and in the main it is connected with a growth of income and also with recalculation of deferred income tax liabilities because of reduction of CIT (corporate income tax) rate from 30% to 20%.

Company’s investment programme

Volume of capital investment absorption for 2008 amounted to 22 mlrd. KZT, that 170% more than the similar figure of the last years level. The company proceeds with realization of the large-scale investment projects directed on improvement in quality of the services on power transmission and development of NPG Kazakhstan. In 2008 several key events have been taken place in power industry. Most significant of them was a putting into operation of line “North Kazakhstan – Aktobe oblast”, completion of first phase of a breakthrough project “Construction of line of second Kazakhstan North-South transit”.

“Kazakhstan Electricity Transmission Rehabilitation” Project

Project implementation covers ¾ of all SS (substations) forming the National Power Grid. Cost of the project is 43.8 mlrd.KZT. Within the framework of the project (finishing in 2009) modernization of high-voltage equipment and installation of relay protection and automation devices at 41 substations have been completed, a system of dispatch control and SCADA/EMS management has been introduced; a digital corporate telecommunication network, a commercial metering system (CMS) and a trading system have been created and operate.

“Construction of second 500kV power transmission line of Kazakhstan North-South transit”

Cost of the project is 43.7 mlrd. KZT. On October, 22 of 2008 the first phase has been completed, section of 500kV YuKGRES-Shu OHTL with length 250 km has been connected. Putting into operation the second line of North-South transit with total length 1115km is planned in 4th quarter of 2009 and will provide covering of power shortfall in the South zone of Kazakhstan, having increased the volumes of transmitted power from power excess North region of the republic from 650 MW to 1 350 MW (or from 3.5-4.0 mlrd.kW•h to 7.5-8.0 mlrd.kW•h annually).

Technical control of “Construction of North Kazakhstan-Aktobe oblast interregional power transmission line” Project

On 29th of December a new interregional power transmission line 500kV “North Kazakhstan – Aktobe oblast” OHTL with length 500km has been successfully connected. “KEGOC” JSC participated in realization of a breakthrough project as a shareholder of concessionaire-company “Batys-transit” JSC with 20% share of participation. Cost of the project is 20 mlrd.KZT. From January of 2009 an access to the energy sources of North Kazakhstan for the consumers of Aktobe oblast has provided.

New investment projects

According to the Plan of measures for development of power industry for 2007-2015, the Company starts realizing of the new projects having strategic importance for the republic. Presumed source of financing the new projects are the loans of EBRD, IBRD, KDB and the own funds of the Company including out of increase of authorized capital from one shareholder of the company “National Welfare Fund “Samruk-Kazyna” JSC.

“Scheme of power distribution to Moinakskaya GES in NPG Kazakhstan”

The projects provides construction of two 220kV OHTL for connection of Moinakskaya GES (300 MW) with NPG Kazakhstan and covering the peak loads in south region.

Construction of 500/220 kV “Alma” substation with connection to NPG Kazakhstan by the lines of 500 and 220 kV”

Realization of the project will allow to provide reliability of power supply for Almaty region, perspective power demand of Almaty and the satellite-towns and to provide power distribution to Balkhash TES under construction.

 “Kazakhstan Electricity Transmission Rehabilitation”, 2 phase

Project is realized in accordance with the Plan of measures for development of power industry in the Republic of Kazakhstan for 2007-2015. In June of 2008 a syndicated loan of EBRD to the amount of ? 255 mln. has been attracted to realize the project.

Perfection of corporate governance

The company carries out a system work for perfection of management level. Among the first in domestic business sector they fully introduced the Code of Corporate Governance meeting the international standards. On January, 22 of current year “KEGOC” JSC received a confirmation that the rating agency “Standard & Poor’s” assigned CGR 5. In August of 2008 the company certified the integrated management system in accordance with ISO 9001:2000, ISO 14001:2004 and OHSAS 18001:1999 standards.