OREANDA-NEWS. The total costs of DTEK for sustainable development projects, including social partnerships with towns where the Company operates, health and safety, environmental protection, and maintenance of social assets totalled UAH 1,533.3 billion in the first half of 2013. Most of the expenditures are planned for the second half of the year.

 Social investments into the development of regions where DTEK operates totalled UAH 43.5 million. Until the end of the year, it is planned to invest about UAH 144 million in social projects, including UAH 120 million as part of the three-year Social Partnership Strategies with regions where the Company operates and about UAH 24 million into the Development Fund of Luhansk Region.

 "We began actively working on two new areas of social partnership in 2013 – the formation of the business environment and the increased participation of communities. To this end, we created Local Development Agencies in 14 towns. These agencies will deal directly with the attraction of investments in these towns and search for new opportunities for their residents. We decided to develop projects for three industrial parks in regions where we operate (near Sverdlovsk/Rovenki, Pavlograd, and Burshtyn). As a result, we should come to the point when the towns become as independent from big business as possible, and are able to develop successfully and sustainably on their own,” said Alexander Tolkach, DTEK’s External Affairs Director.

 DTEK spent UAH 290 million on the maintenance of social sector assets and non-commercial facilities in the first half of 2013. Most of the expenditures were spent on the maintenance of boiler houses, health and recreation resorts, housing facilities on the books of enterprises, public food facilities, and sports and recreation facilities.

Social partnership

 In 2013, DTEK started the implementation of three-year Social Partnership Strategies with 22 populated territories where the Company operates. Civil society organizations, representatives of municipal governments and city councils, and active citizens are being actively involved in the process. Social projects are being implemented in five main areas: energy efficiency in the utility sector, health care, support of socially relevant infrastructure, development of the business environment, and increasing community participation. In most areas there are “end-to-end” projects implemented simultaneously (or in several stages) in all regions where DTEK operates. In addition, each town, depending on its needs, is implementing its own projects along the five areas.

Major projects in social partnership sphere:
Energy-efficient schools. In the first half of the year, a pilot project was implemented in 11 schools in Kyiv. Children did not only study the subject of heat saving in theory, but also had a practical visit to Kyiv CHPP-6. They created their own projects to improve the energy efficiency of their schools. According to the results of the contest held at the end of the course, 5 schools were awarded with money certificates for implementation of energy-saving projects to an amount of UAH 180 thousand each; 2 schools received certificates for UAH 20 thousand, 4 schools - for UAH 15 thousand. During the project, energy savings of schools amounted to 19,701 kWh or UAH 23,462. According to the poll, more than 95% of pupils in the pilot schools and 98% of their parents changed their habits to more energy-efficient ones as a result of the project. In September, the project will be launched in 52 schools in the regions where DTEK operates.
Municipal heating reform. Energy audits were performed and urban energy plans were prepared in Kyiv and Dnipropetrovsk. In May, Kyiv secondary school #233 was opened following its thermal rehabilitation. In Dnipropetrovsk, thermal rehabilitation projects are underway in two schools and a kindergarten. The implementation of these projects will make it possible to cut down their energy consumption by 35-45% in Dnipropetrovsk and by 60% in Kyiv. Thermal rehabilitation of the school and kindergarten in Kyiv (2012) will result in approximately UAH 1 million of annual savings for the city’s budget.
Telemedicine. In 2013, DTEK is working actively to connect the hospitals in Ladyzhyn, Dobropolye, Sverdlovsk, and two hospitals in Pavlograd to the project network. The Company provided financing for the project implementation in other populated areas of DTEK’s presence: Pershotravensk, Ternovka, Kirovskoye, Rovenki, Energodar, Dobrotvor, Zelenodolsk, Pavlogradskiy and Petropavlovskiy districts. In July, the project was successfully launched in Burshtyn: first video consultations took place involving doctors of Burshtyn municipal hospital and leading experts of N.M. Amosov National Institute of Cardiovascular Surgery; one of the patients was invited for the follow-up medical examination and further treatment at the Institute. The project enables the patients to have remote medical appointments with the best doctors without leaving their hometowns.
Creation of industrial parks. DTEK is currently performing preparatory work to create three industrial parks in Ukraine: in Ivano-Frankivsk, Dnipropetrovsk and Luhansk regions. Jointly with the Foundation for Effective Governance, the Company set up a Task Force to create industrial parks, defined the milestones and steps for the project implementation and secured the required approvals of the governors. The Company is currently negotiating with the State Agency for Investment and National Projects of Ukraine to include the industrial parks in Burshtyn, Pavlograd, Sverdlovsk and Rovenki to the National Project of 10 industrial parks to be created. DTEK is planning to analyze the land plots allocated for industrial parks and prepare the terms of reference for the Technical Audit.  
Creation of Local Development Agencies. In 2013, Local Development Agencies (LDAs) were created in eight towns where DTEK operates (overall, the agencies operate in 14 towns now), training was organized for the agencies’ staff. The main objective of the agencies is consulting of small and medium-sized businesses, fostering attraction of investments in the town, development of educational projects that create new opportunities for the town and its residents. In 2013, the Local Development Agency of Dobrotvor town attracted five grants to a total amount of UAH 146,000. It held almost 200 consultations. The Local Development Agency of Ladyzhyn held 40 consultations. Four new business entities were set up following its consultation support.
Your Hometown in Your Hands. Your Hometown in Your Hands contest of mini grants for the civil society organizations and citizen initiative groups took place in 13 cities and towns where DTEK operates. During the contest month, 222 applications were received. Mini grants in the amount up to UAH 20 thousand each were awarded to 74 projects aiming to improve the building surrounding grounds, kindergartens, schools, and to organize leisure time for youth and children. All the projects will be completed by the end of November 2013.
Key events in social partnership sphere in the first half of 2013:
April 2013. DTEK and Ivano-Frankivsk Regional State Administration signed a Cooperation Agreement on the social and economic development of Ivano-Frankivsk region within the framework of their social partnership. In the course of 2013, DTEK plans to allocate UAH 7.2 million for the implementation of priority projects for the development of the region and the town of Burshtyn.
April 2013. DTEK implemented its first corporate volunteering project. Over 8,600 DTEK employees participated in the Clean City campaign. Volunteers in 24 cities and towns collected over 600 tonnes of inorganic waste that was sent to sorting lines and duly disposed of.
May 2013. DTEK, Luhansk Regional State Administration, and Luhansk Regional Council signed an addendum to their Cooperation Agreement on the social and economic development of Luhansk region dated 2 March 2012. Separately, a decision was made to establish a Development Fund for Luhansk region. The new fund should be an effective mechanism to attract financial resources from international and national grant programs to address social issues of the region. The key objective of the fund will be the organization of a new industrial park near the towns of Sverdlovsk and Rovenki.
May 2013. DTEK, the United States Agency for International Development, and Kyiv City State Administration opened the first energy-efficient school in Kyiv. DTEK invested UAH 3 million to improve the energy efficiency of a school and a kindergarten in the capital. These projects were the final stage of the joint work of DTEK, USAID and Kyiv City State Administration.
June 2013. DTEK, Dnipropetrovsk Regional State Administration, and Dnipropetrovsk Regional Council signed a Memorandum of Cooperation on Social and Economic Development Issues of Dnipropetrovsk Region. The Company will double social investments in Dnipropetrovsk in 2013.
Occupational health and safety

 The costs of projects in the field of occupational health and safety at DTEK’s coal mining, electricity generation and electricity distribution enterprises amounted to UAH 280.2 million.

 Major areas of investment in the field of occupational health and safety:
Purchase and maintenance of small tools and equipment, ventilation and gas drainage in the coal mines.
Purchase of personal and collective protection equipment, fire protection equipment.
Expert appraisal of industrial safety, receipt of permits, certification.
Repair and maintenance of household and service premises, working places, emergency escapes and other facilities.
Bringing of the capital assets in line with the requirements of safety rules and regulations.
Purchase of special food, milk, salted carbonated water.
Key achievements in health and safety area in 1H 2013
The system of health and safety management successfully passed through the compliance audit validating its conformity with the requirements of OHSAS 18001:2007 at DTEK Pavlogradugol, DTEK Mine Komsomolets Donbassa, DTEK Dniproenergo, DTEK Donetskoblenergo, DTEK Dniprooblenergo.
Procedures of personnel motivation in health and safety area, three-level internal control over occupational health and safety and appraisal of managers in safety area were developed and introduced at the Company’s enterprises.
A system of training and knowledge testing with the use of computer systems was introduced at all the coal mines of the Company.
Pilot projects "Rent of overalls" were launched at DTEK Donetskoblenergo and DTEK Krymenergo.
Environmental protection

 The environmental costs of DTEK in the first half of 2013 amounted to UAH 919.6 million. These investments were focused on measures to protect the air, reduce the emissions of thermal power plants, reclaim land areas, protect water resources, and organize proper handling of hazardous and toxic substances and materials.

 Key achievements in environmental protection area in 1H 2013:
Independent auditors from the international company Moody International confirmed the compliance of the environmental management systems (EMS) of DTEK Dniproenergo, DTEK Donetskoblenergo, and DTEK Dniprooblenergo with ISO 14001:2004.
Performance tests of the electrical precipitators installed at power unit #4 of DTEK Zuivska TPP and power unit #6 of DTEK Kurakhovska TPP were accomplished. Residual dust content of less than 50 mg/Nm3 was achieved, which meets the requirements of European Directive 2001/80/EC. The electrical precipitators are equipped with an automated system for monitoring exhaust gases (SMUG).
Major overhaul of the pumping station for household sewage and pressure header at the site of air supply shaft #3 of Komsomolets Donbassa Mine was carried out. Sewage pumping station was installed and sewage pressure header was replaced.
Tailings pit was subject to expansion and rehabilitation and enclosing structures of the pit’s dam were topped up at Sverdlovska CEP. Metal pipeline in the system for discharge of the flotation tailings to the sludge pond was replaced with the plastic pipeline at DTEK Oktyabrs'ka CEP. The second pipeline in the system for discharge of flotation tailings to the sludge pond was replaced at Obukhovskaya CEP.
Major ongoing projects
Wider use of ash and slag materials of TPPs. Work is underway within the framework of Ukrainian-Polish partnership in this area. Methodological recommendations for the use of ash and slag materials of Zuivska TPP in road construction were developed within the framework of the project for construction of the road section between the town of Zugres (Donetsk region) and solid waste landfill using the ash and slag of DTEK Zuivska TPP. In 2013, DTEK Zuivska TPP and HeidelbergCement continue their cooperation for the supply of ash and slag mixtures from the ash dump in Kalmytskaya Balka (total amount supplied in the first half of 2013 is 19 thousand tonnes).
Correction of the Ternovka River water course. The project is being implemented to prevent flooding of the river’s floodplain and improve the environmental condition of the Ternovka River in the villages of Ternovka and Bogdanovka. The Ternovka River water course was corrected involving bottom dredging for the length of 13.5 km. The finalizing work is currently in progress (water conservation area and protected river-bank line belts, improvement of the river bank line, strengthening of the sewage header supports and remaining sediment control work).