IDGC Holding Investments Total About 30 Billion Rubles in H1 2010

These funds are specified in the investment programs and will be used to put into operation 7,533 MVA of transformer capacity and 12,202 kilometers of transmission lines.
In the 1st half of 2010, IDGC Holding subsidiaries put into operation 1,797 MVA of transformer capacity and 4,030 kilometers of transmission lines. For comparison, IDGC Holding subsidiaries put into operation 1,011 MVA of transformer capacity and 2,260 kilometers of transmission lines in the 1st half of 2009. Therefore, current data show a 78 percent year-over-year increase. IDGC Holding spent around 30 billion rubles, inclusive of VAT, in the 1st half of 2010 on its investment program.
Director General of IDGC Holding Nikolay Shvets holds that “the investment program is carried out on schedule and with the proper quality.”
Investments are chiefly channeled into the construction and rehabilitation of the electric grid facilities that ensure system operation reliability of Russia’s United Power System and are specified in the cooperation agreements between interregional distribution grid companies and Russian regional administrations.
The priority areas of investment are primarily determined by high-risk regions, including Moscow, Saint Petersburg, and the Tyumen Region. Particular emphasis is placed on implementing the target-oriented program of the construction of Olympic Games sites and the development of Sochi as a mountain climate resort, approved by the Russian Government.
Among the most important national-level facilities put into operation in the 1st half of 2010 is the Rostoshi 110 kV substation (50 MVA) (Orenburgenergo, a branch of IDGC of the Volga). The substation is designed to be used in the electricity supply for Orenburg’s new housing developments. Of no less importance is the project that made the electricity supply more reliable for customers in the Republic of Buryatia and opened up the opportunity for new network connections: the Gusinoozyorsk–Okino-Klyuchi 110 kV overhead transmission line (16.3 kilometers) (Buryatenergo, a branch of IDGC of Siberia). The commissioning of the Golovnaya–Kislovo 110 kV No. 283 overhead transmission line (11 kilometers) in the Volgograd Region (Volgogradenergo, a branch of IDGC of the South) made it possible to reduce electricity losses and enhance the reliability of the electricity supply for existing customers. The Tsentralnaya 110 kV substation (40 MVA) was put into operation in Vologda (Vologdaenergo, a branch of IDGC of the Northwest). The new substation enhanced the reliability of the electricity supply for customers and made it possible to satisfy the growing demand of new construction in Vologda. The commissioning of the Vezhayka–Vozhskaya section (24.1 kilometers) of the Mikun–Yedva 110 kV overhead transmission line in the Komi Republic (Komienergo, a branch of IDGC of the Northwest) made the electricity supply reliable for Komi-based customers. The Shatura–Bruski and Bruski–Yegoryevsk 110 kV overhead transmission lines (43.3 kilometers) (Eastern Electric Grids, a branch of MOESK) enabled the Shatura thermal power plant to distribute its capacity and made it possible to satisfy the growing demand of Yegoryevsk and the Yegoryevsk District.