OREANDA-NEWS. September 19, 2011. JSC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces the results of the Board of Directors that took place September 9, 2011.

The Board of Directors approved a report concerning the execution of the Company's key performance indicators for Q2 2011. All key performance indicators have been fulfilled.

Preliminary fulfillment results for Q2 2011 KPI values have been reviewed by RusHydro's Management Board. The indicators have been calculated in accordance with the Company's KPI calculation and assessment procedure and have been approved by a decision of the Board of Directors.

2011 annual and quarterly key performance indicators were approved by a decision of the Board of Directors as of 18.03.2011.

The Board of Directors noted information about material aid payments to injured parties and bereaved families as the result of a subversive action that occurred at the Baksanskaya HPP, as well as a natural disaster at the Irganayskaya HPP in 2010.

The decision to pay material aid was approved by the Company's Board of Directors as of 10.08.2010. Currently, lump sum payments have been made to injured parties and bereaved families. The remaining amount including: material assistance for a bereaved family till the youngest child reaches the age of 18 and compensation for the cost of sanatorium-resort treatment for the bereaved family members will be paid off over the next several years.  

The Board of Directors noted a report on intermediate implementation results for the Company's 2011 business plan taking into account H1 2011 (including a report on the implementation of the H1 2011 Investment Program).

The Board of Directors approved the Company's 2011 adjusted business plan.

The Board of Directors instructed RusHydro representatives to approve a sale-purchase agreement to acquire 95.28 % of ordinary registered shares as a major transaction at the Extraordinary General Shareholders Meeting of LLC Verkhnebalkarskaya SHPP. The Renewable Energy Development Fund "New Energy" will be a seller under this agreement and LLC Verkhnebalkarskaya SHPP will act as a purchaser. This transaction is being completed as part of an asset restructuring program of the "New Energy" Fund.

In addition, the Board of Directors instructed RusHydro representatives in the executive bodies of LLC Verkhnebalkarskaya SHPP to vote for LLC Verkhnebalkarskaya SHPP's share increase in the registered capital of JSC KBR SHPP to 100 %.

The renewable energy sources development fund "New Energy" was founded January 2007 to implement projects to construct small HPPs. RusHydro was one of the Fund's founders and delegated the functions of the small hydro-power engineering development program's operator to it. In 2008, due to Program reduction, RusHydro decided to suspend small HPP construction projects implemented by the "New Energy" Fund.

LLC Verkhnebalkarskaya SHPP and JSC KBR SHPP are affiliated companies of the "New Energy" Fund, established to implement small HPP construction projects.

The Board of Directors approved a corrected program for RusHydro's 2011 charitable and sponsorship activities.

Additions to the Society's 2011 charitable and sponsorship activities include: financing the Comprehensive Program for Sretensky Stavropegial Friary of the Russian Orthodox Church (Moscow Patriarchate) territory reconstruction and development, as well as financing the Fund's activity on supporting the "STRATEGY-2020" civil initiative.

The Board of Directors approved the conclusion of Supplemental Agreement No. 3 to the Contract between RusHydro and JSC Power Machines to upgrade hydro-power units at the Zhigulevskaya HPP - RusHydro's branch.

The supplemental agreement involves the manufacturing and delivery of hydro-power automated control system equipment and auxiliary systems for a hydro-power unit to JSC Power Machines, as well as carrying out work to update existing work documentation to affix a new hydro turbine, design and survey work, as well as work on stator winding restoring, preparatory work, de-mounting, construction and mounting in order to install a turbine, hydro-generator, auxiliary equipment and systems. 

Installation of new turbines will make it possible to increase the nominal power of each hydro-power unit at its design head to 10.5 MW (115 MW to 125.5 MW). After an upgrade of hydro-power units at the Zhigulevskaya HPP according to the Agreement with JSC Power Machines, total HPP power will increase to 147 MW.