The company’s investment program amounts to 3.099 trillion rubles, RAO UES chief executive says.
Photo: Pavel Smertin
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RAO UES Reviews Its Financial Sources
Russia’s power giant RAO UES has reviewed its investment program till 2010, saying the financing will largely rely on the company’s own funds and profits from additional share issue of its power generating subsidiaries. Industry experts point out that the RAO UES has overestimated these sources as the market price of generating units is already too high while energy prices will not be as lofty as to enable RAO to rely on own financial power.
In a new appendix to its investment program, RAO UES of Russia describes plans of the construction of new power stations. The electricity grid is going to build power plants with the capacity of 28,800 mWt of thermoelectric power and 4,900 mWt of hydropower before 2010.
The company’s investment program is worth 3.099 trillion rubles, the figure that RAO UES chief executive Anatoly Chubais cited at the program’s presentation two weeks ago. Sources of financing, however, have been reviewed since then. The electricity monopolist will finance 28.3 percent of the program, up from 694.2 billion to 989.8 billion rubles in the reviewed investment strategy. RAO UES plans to raise 367.1 billion rubles, up from earlier declared 256.2 billion, in additional share issues of its generating units.
At the same time, the share of the Russian federal budget in the program shrank from 284.8 billion rubles to 210.3 billion.
Analysts were surprised with the way shares of financing sources for RAO UES has changed. Expecting to reap big profits from additional issue share, the national power company seems to hope for a further growth in its share quotations. “I doubt that investors will be ready to pay $700 per 1 kWt in any generating company – this is the current payment based on market quotations. But a more realistic price is about $300,” says Alla Petrova from KIT Finance. In addition, there is no way for RAO UES to find extra money in the company other than increasing energy prices. There is not much chance, however, that federal authorities let the tariffs go up so quickly, experts note.
www.kommersant.com
All the Article in Russian as of Feb. 28, 2007
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