Preliminary results of operational activity for 2010

English

Main Indicators of Kazakhstan Electric Power Industry

In 2010 electricity generation in the Republic of Kazakhstan was 82.3 bln kWh (4.9% higher the level of 2009), consumption was 83.8 bln kWh (increase by 7.4% to 2009).

        Financial indicators 

General tendency of increase in volume of electricity generation and consumption in Kazakhstan UPS had a favorable impact on financial results of the Company that bears witness of economic situation recovery. In comparison with the same period in 2009 the consolidated revenue from services and activities increased by 26% or by KZT 13 bln. On preliminary results of 2010 the consolidated revenue of the Company is expected to be at the level of KZT 50 bln, total income at the level of KZT 5.8 bln when KZT 3.6 bln were planned (against losses of the previous year in amount of KZT 4 bln 459 mln).

        Operation Indicators

The Company finished 2010 with over-fulfillment of plan on all key operation indicators. Actual amount of services rendered on technical dispatch and electricity generation-consumption balancing management in comparison with 2009 has increased by 6% and 7% correspondingly. The volume of electricity transmission including transit of the Russian Federation, has increased by 14.5% comparing to the level of 2009 and was 34.7 bln kWh. Labor productivity has increased by 13.6% (from KZT 7.1 mln to KZT 9.7 mln per man).

Operation reliability of NPG has significantly increased. The number of emergency outages has decreased by 11%. Target values have improved owing to commissioning of the second line of North-South transit that reducedthe amount of undersupplied energy by 25% (from 1054.4 thous kWh in 2009 down to 752.5 thous kWh in 2010). Average frequency of power supply interruptions also reduced three times.

Local procurement

The Company carries out a systematic work on increasing the content of local works, goods and services. Local content accounted to 60.5% (KZT 27.7 bln in money terms) under double increase of purchase volume (from KZT 22.6 bln in 2009 to KZT 45.8 bln in 2010).

Strategic Development of the Company  

In 2010 the Company accepted the “Long-term Development Strategy up to 2025” (approved by the Fund), which was developed in accordance with Order of the President of the Republic of Kazakhstan “On Government Planning System” No. 827 dated 18 June 2009 and is based on the Company management vision of the perspective development areas, the Strategic Development Plan of the Republic of Kazakhstan till 2020, State Program of Boosted Industrial and Innovative Development of Kazakhstan.   

For successful implementation of “Long-term Development Strategy up to 2025” (hereinafter – Strategy), the Company has developed and approved the comprehensive action plan under which the set of Company`s efficiency factors was defined demonstrating the progress of Strategy implementation.    

Additionally in December 2010 the Board of Directors of the Company developed and approved “KEGOC Development Plan for 2011-2015” in accordance with the new requirements of NWF Samruk-Kazyna JSC.

 Implementation of Kazakhstan NPG development projects

Investment projects such as Kazakhstan Electricity Transmission Rehabilitation Project, Phase I and Construction of the Second Transmission Line of Kazakhstan North-South Transit Project (OPGW part) have been implemented.  Moinak Electricity Transmission Project, Alma Electricity Transmission Project and Kazakhstan Electricity Transmission Rehabilitation Project, Phase II, included in the State Program of Boosted Industrial and Innovative Development of Kazakhstan were started to secure reliable power supply to Almaty region.

With the support of the Sole shareholder and the Government of RK the required financing was raised for projects implementation. On 25 December the loan agreement to the amount of USD 78 mln against the sovereign guarantee was signed with IBRD for implementation of Alma Electricity Transmission Project.  

For Kazakhstan Electricity Transmission Rehabilitation Project, Phase II (replacement of power equipment at 55 substations and construction of 220 kV OHTL) in accordance with terms of loan agreement of EBRD in amount of EUR 255 mln the tenders for selection of contractors were held; the contracts were signed with Indian Company KEC International (2 packages) and Consortium KEPCO, Hyundai Engineering Co. and Hyundai Corporation (Republic of Korea).

In 2011 under Kazakhstan Electricity Transmission Rehabilitation Project, Phase I it was expected to complete construction and put into operation 220 kV OSY at Moinak HPP, extension of 220 kV 220/110/10 kV OSG at Shelek SS and extension of 220/110/10 kV OSG at 220 kV Robot SS.  

Under Phase II it is planned to conclude the turn-key contract for construction and commissioning of 220 kV OHTL Moinak HPP - 220 kV Shelek SS (length 97.45 km) and perform a part of construction and erection works on the construction of 220 kV OHTL Moinak HPP -220 kV Robot SS (length 227.457 km). 

In 2011 under Modernization of 220 kV OHTL TsGPP – Ossakarovka project it is planned to receive funds of about KZT 600 mln from the republican budget for modernization of upgrade  transformer capacity at TsGPP and raise borrowing funds for the missing amount of financing.

 International cooperation

In accordance with interstate Agreement “On Measures to Secure Parallel Operation of Kazakhstan and Russia Power Systems” the documentation package was signed between KEGOC JSC and FGC UES OJSC, SO UPS OJSC, INTER RAO UES OJSC. Agreements, effective since 1 May 2010, regulate arrangement and performance of parallel operation of power systems of two states in terms of Customs Union and establishment of United Economic Area. At the present moment other agreements and regulations required for full-fledged and mutually beneficial co-operation between the System Operators and individual electricity market participants are under the study. In accordance with the signed agreements the acquisition of income is secured in amount of KZT 4 bln.

For consultation on issues regarding the 2010-2011 autumn and winter period there was established a response center on the basis of the Company for co-operation with the media. If any trustworthy information regarding Kazakhstan UPS operation is required journalists may call in Astana to the following phone numbers:

970-101 Bakhytzhan Kazhiyev, Deputy Chairman of Management Board

970-350 Serik Nugmanov, Head of National Dispatch Center

970-415 Marat Mukhamedsaliyev, Senior Manager of Public Relations Division