Investment Program: narrative and major events

Investment Policy of JSC “Yenisei TGC (TGC-13)”

The investment policy of JSC “Yenisei TGC (TGC-13)” is targeted to the achievement of high indices of return on capital by way of carrying out a clear investment program and implementation of effective investment projects. All investment projects should correspond to strategic priorities of the company development.

The final goals of the company investment activity are: increase of competitive ability, growth of profit and provision of reliable operation of its stations.

Investment Activity of JSC “Yenisei TGC (TGC-13)”

The investment activity is realized in two major areas:

• Investments in modernization of existing fixed assets in order to provide reliability and efficiency of operating equipment.
• Investments in new capacities in order to satisfy the needs of the region in heating and electric power.

Priority Investment Projects
Main investment amount falls to the share of projects connected to increase of installed power of plants and heating networks development.

The investment programme is aimed at improvement of consumer energy supply reliability, provision for industrial and social development of the region, formation of a technological capacity reserve, elimination of forecast deficit of thermal energy.

The investment project "Construction of Power Unit No. 1 of Krasnoyarsk CHP-3", approved by Krasnoyarsk and Krasnoyarsk Territory Authorities has paramount importance for development of the Company and the Krasnoyarsk City. This project implementation will allow to satisfy the city’s growing demand for electric and thermal energy due to increase of total installed electric power of the CHP by 185 MW, of installed thermal power – by 270 Gcal/h.

Program for Development of Heat Networks of Krasnoyarsk city

In the framework of the investment program of the company and with the assistance of the Krasnoyarsk City Administration, there is a program of the development of heating system facilities of the city of Krasnoyarsk for 2007-2012. Implementation of the program will make it possible to increase the carrying capacity of the heat network, optimize the use of large heat sources - Krasnoyarsk CHP-1, Krasnoyarsk CHP-2 and increase the installed load of heat consumption facilities.

Sources of Financing Investment Programs

Financing of investment programs is done from the following sources:

— Own means (depreciation, surplus earnings of the past years, net profit of the year under report).
— Debt capital (loans, additional share issues).
— Payment for connection (only for the programs of Krasnoyarsk city heating system development).

Priority sources — depreciation charges and loans of credit agencies.