OREANDA-NEWS. The Board of Directors of RAO "UES of Russia" instructed RAO UES representatives on the Board of Directors of OAO "Kolymaenergo" to vote FOR the establishment by Kolymaenergo of two wholly-owned subsidiaries, OAO "Ust-Srednekanskaya HPP" and OAO "Ust-SrednekanGESstroy".

This resolution is designed to spin off the construction project of the Ust-Srednekanskaya HPP of OAO "Kolymaenergo" consisting of the power plant under construction and the construction units. The plant's construction in progress assets will be transferred to OAO "Ust-Srednekanskaya HPP" and its construction units will be transferred to OAO "Ust-SrednekanGESstroy".

Such spin-off procedure will increase the transparency of services pricing, and ultimately that of the electricity rates. Another benefit will be a much simpler cost management process.