Kaliningrad grid modernization to cost 15 bln rubles; subsidiary to issue 11 bln rubles in new stock
MOSCOW. July 14 (Interfax) - It will cost 15 billion rubles to modernize the Kaliningrad region's power grid, Deputy Russian Energy Minister Vyacheslav Kravchenko told reporters.
Kravchenko said PJSC Russian Grids would provide 11 billion rubles via an issue of new shares by a wholly owned subsidiary, Yantarenergo . Corporate approval procedures should be completed in late 2016 or early 2017, he said.
"We have found the financing source. We expect that the entire project will be about 15 billion rubles," Kravchenko said. The project will take two-three years to implement.
"The proposed financing sources are as follows: Yantarenergo's internal resources, in addition, this is funds from Russian Grids in the form of a supplementary issue and accordingly, it is proposed that this will be resources from the federal budget," he said.
Funds from technical connections and budget money will provide roughly 3 billion rubles each, he said.
Financing of individual projects will begin this fall, with funds Yantarenergo receives from Russian Grids.
Russian Grids will provide money for the Kaliningrad grid project out of dividends it receives from subsidiaries, a company representative told Interfax. The Russian Grids board of directors approved 10.8 billion rubles in recapitalization for Yantarenergo in June.
Federal Grid Co , in which Russian Grids has an 85% stake, accounted for the bulk of the dividends Russian Grids received for 2015: almost 17 billion rubles.
Earlier, investment in a new scheme for supplying power in the region was estimated to cost 12 billion rubles.
