JSC “MOESK”Carries Out Regular Board of Directors Meeting

On May 12, 2011 JSC “MOESK” carried out the absentee meeting of the Board of Directors.

The Board of Directors discussed the following questions:

1. On consideration of the report of JSC “MOESK” Company’s policy over quarter 4th of 2010   

2. On consideration of the report on provision of the insurance protection of JSC “MOESK in quarter 1 of 2011.   

3. On consideration of the Report on meeting of the Regulation on information policy of JSC “MOESK” over quarter 1, 2011.   

4. On consideration of the report on results of going through the autumn and winter period of 2010-2011.   

5. On approval of the key indices of JSC “MOESK” cash flow over quarter 2nd of 2011.   

6. On approval of the Agreement on implementation of the works complex at “Substation Novo-Gogolevo” between JSC “MOESK” and JSC “RETO factory” as the interested party transaction.   

7. On approval of the framework agreement on implementation of the complex of urgent works between JSC “MOESK” and JSC “RETO Factory” as an interested party transaction.   

8. On approval of the contract Agreement between JSC “MOESK” and JSC “RETO Factory” as an interested party transaction.   

9. On approval of the contract agreement between JSC “MOESK” and JSC “RETO Factory” as an interested party transaction.   

10. On approval of the contract agreement for implementation of the research and development works between JSC “MOESK” and JSC “RETO Factory” as an interested party transaction.   

11. On approval of the agreement on opening of the renewable credit line, as well as the additional agreement to the Agreement on opening of the renewable credit line between JSC “MOESK” and “Gazprombank” (Open Joint Stock Company) as an interested party transactions.   

12. On approval of the candidates to the insurers of JSC “MOESK”.

Over quarter 4 of 2010, the Company attracted RUR10,7 billion and paid off RUR 7,7 billion of the loan means in JSC “Sberbank of Russia” regarding the renewable credit lines   

In the reporting period they cleared off the bills of credit for RUR 2,6 billion.

The payments on the debt processing accounted for RUR 572,5 million. As of 31.12.2010 the credits and loans debt taking into consideration the accrued per cent accounted for RUR 31,3 billion. RUR 4,6 billion is the debt on short-term credits and obligations and RUR 26,7 billion is that for the long term ones.

According to the report on results of autumn and winter period going through approved by the Board of Directors (hereinafter referred to as AWP) of 2010/2011 within the goals of preparation to AWP, the following was repaired:

- 239 power transformers;
- 2 705 SF6 circuit breakers of 6-220 kW;
- 1 584 km of overhead cable lines of 35-220 kV;
- 102,1 km of high voltage cable lines of 35-220 kV.

Costs for carrying out of works on capital construction and technical retooling in 2010 accounted for RUR 4,3 billion.

The plan of the capital investments in 2010 accounted for RUR 19,5 billion, together with that there is the implementation of the fixed assets for the amount of RUR 28,7 billion (implementation of 2 276,3 МVА of transformer capacity and 2 004,6 km of power transmission lines).

Over AWP of 2010/2011 JSC “MOESK” went through 2 301 breakdowns, against 1 848 breakdowns during AWP of 2009/2010. The increase of the amount of breakdowns is mostly connected with the trees falling caused by “icy” rain. The lack of the electric power release accounted for 983 thousand kWh, as a result, the economic loss accounted for RUR 896 millon.

The events planned by the results of AWP of 2010/2011 were included into the corrected investment and repairs programs of JSC “MOESK” and will be implemented in the process of preparation to AWP of 2011/2012.

As well, the Board of Directors approved the agreement on opening of the renewable credit line between JSC “MOESK” and Gazprombank (JSC)   

- percents for credit use are - 7,92% per annum;
- credit limit amount – RUR 1,5 billion.

For the period from 01.04.2011 to 31.03.2012 Open Joint-Stock Insurance Company “Ingosstrakh” was stated as the insurer for the liability insurance in case of damage due to the mistakes occurred in the project works, which might influence the capital construction objects. 

 
For the period from 21.04.2011 to 20.04.2012, JSC “AlfaStrakhovanie” was stated as the insurer for the goals of the general liability insurance of the transport means owners (compulsory third party car insurance).