FGC's 2012-2014 investment program estimated at 504.8 bln rubles
MOSCOW. May 17. (Interfax) - OJSC Federal Grid Company UES' investment program for 2012-2014 is estimated at 504.8 billion rubles, the company said in a press release.
The plan, which has secured Russian Energy Ministry approval, "entails investments totaling 504.8 billion rubles into the commissioning of 50,368 MVA of new transformer capacity and 13,147 kilometers of new transmission lines," it said.
"In 2012 Federal Grid Company plans to invest 195.6 billion rubles into projects entailing the construction, renovation and overhaul of elements of the unified national energy grid (UNEG). Federal Grid Company plans to bring 4,371 kilometers of transmission lines and 14,874 MVA of capacity online this year," the press release said.
FGC's investment program will soon be submitted for board of directors approval.
Earlier, FGC's approved program for 2010-2014, worth 942.4 billion rubles, assumed investments of 194.6 billion rubles in 2012, 197.8 billion rubles in 2013, and 199.9 billion rubles in 2014. Therefore, planned investments in the three-year period could fall by 90 billion rubles.
Meanwhile, the company's Deputy CEO Andrei Kazachenkov previously said that FGC could cut its investment program by 150-160 billion rubles in 2013-2014 in the case of 11%, 10% and 10% tariff growth respectively on July 1 of this year and the next two years.
Until recently, the Russian government was considering several options for tariff indexation for the company's services - 11%-10%-10%, 15% and 19% on July 1 of 2012-2013-2014, respectively. In the case of 15% tariff growth, FGC will face a 40-50 billion ruble deficit in its investment program each year, starting in 2013. At the same time, 19% growth would not cause a deficit to emerge, Kazachenkov said.
Meanwhile, the authorities are now discussing the possibility of postponing tariff revisions for FGC and IDGC Holding from July 1 to November 1, in connection with plans to merge the companies.
Interfax has so far been unable to obtain comment from FGC on the 90-billion-ruble drop in its investment program.
Earlier, the company's board of directors approved the possibility of placing 17 bond issues worth 225 billion rubles, as well as a program to issue up to 100 billion rubles in Eurobonds. A decision on the precise volume of the bond placement will be made in agreement with the limit on borrowing from third parties, as well as in accordance with the current lending policy. FGC previously told Interfax that funds will be raised as needed.
FGC owns and manages power grid facilities of Russia's united national energy grid. Its main shareholder is the government, with a 79.48% stake. Its minority shareholders include Gazprom and MMC Norilsk Nickel .