Investments in Development
The Concern’s investment activities through capital investments seek to implement the Long-Term (2009–2015) Program of Rosatom State Nuclear Energy Corporation approved by Resolution of the Government of the Russian Federation No. 705 of September 20, 2008 (as amended in October 4, 2013) to the extent of development of the nuclear power industry in Russia. With a view to continuous and efficient implementation of this objective as well as in order to achieve strategic goals, the Concern has prepared investment programs for the long term, medium term (three years), and short term (one year).
The Concern’s investment programs are prepared in full conformity with strategic goals of the Electric Energy Division aimed at providing consumers with electrical and heat power produced at Russian NPPs with guaranteed safety as a top priority of its activities.
Distribution of functions among the parties involved in the investment process is regulated in the Investment Agreement between Rosatom State Corporation, Atomenergoprom OJSC, and Rosenergoatom Concern OJSC.
Investment activities of Rosenergoatom Concern OJSC are financed from the Concern’s own funds, from assets contributed by Rosatom State Corporation, and, when necessary, using borrowed funds.
Pursuant to the resolution of the General Meeting of Stockholders of Rosenergoatom Concern OJSC (Minutes No. 7 of June 24, 2014), the Concern’s profit of 281.7 mln rubles were used for investments in development.
The Investment Program of Rosenergoatom Concern OJSC for 2014 was duly submitted to the Ministry of Energy of the Russian Federation, with the planned investments of 185,356.91 mln rubles (210,450.46 mln rubles VAT included). The actual level of fulfillment of the Investment Program of Rosenergoatom Concern OJSC in 2014 totaled 190,875.18 mln rubles (216,499.39 mln rubles VAT included).
Furthermore, the funds of the Rosatom State Corporation’s asset contribution totaling 55,297.2 mln rubles were channeled to investment projects related to construction of NPP power units.
The following projects were implemented in 2014 in subsidiaries of Rosenergoatom Concern OJSC (financing totaled 3,229.85 mln rubles, VAT included):
- Projects of guaranteed suppliers of AtomEnergoSbyt JSC in Kursk, Tver, and Smolensk Oblast – 2,992.74 mln rubles, VAT included;
- Construction, reconstruction, and equipment of production bases of Atomenergoremont JSC – 76.27 mln rubles, VAT included;
- Activities of Atomtekhenergo JSC (acquisition of equipment for start-up work etc.) – 97.79 mln rubles, VAT included;
- Activities of VNIIAES JSC (construction of laboratory and storage complex etc.) – 63.05 mln rubles, VAT included.
In 2014, following competitive processes, AtomEnergoSbyt JSC was awarded the status of guaranteed supplier in Kursk, Tver, Smolensk, and Murmansk Oblasts (orders of Ministry of Energy of Russia Nos. 116 and 117 dated March 19, 2014 and No. 311 dated May 23, 2014, and No. 843 dated November 18, 2014).
The goals of these projects include extending competencies of Rosatom State Corporation, ensuring stability of its positions in the energy market, increasing consolidated profit and revenues of Rosatom State Corporation from sales of electric power, guaranteed sales market for energy produced by organizations of Rosatom State Corporation, and increasing significance and influence of the State Corporation throughout Russia.
|The Estimated Demand for investments to Fixed Capital in 2015 and in 2016 -2018 is as follows:|
The following standalone subdivisions of AtomEnergoSbyt JSC were created in order to perform the function of the guaranteed supplier: KurskAtomEnergoSbyt SS, TverAtomEnergoSbyt SS, branches SmolenskAtomEnergoSbyt, and KolAtomEnergoSbyt with a ramified network of departments and stations which ensure maximum available and comfortable service to all consumers of electric power in the regions.
These projects permitted AtomEnergoSbyt JSC to implement the strategy of entry into the sales of electric power. The revenues of AtomEnergoSbyt JSC in 2014 totaled 29,809.8 mln rubles, net profit totaled 13.6 mln rubles.
Key Results of the Project “Creation of Electric Power Commercial Accounting Systems” in 2014:
- A subsidiary of AtomEnergoSbyt JSC was created – Atomenergopromsbyt JSC. Unregulated type of activity was separated to become an independent energy sales company;
- Negotiations with companies were held; at the first stage, 10 nuclear industry companies will be introduced in the wholesale market of electric power and capacity;
- Design and exploration work started with a view to create automated information and measuring system for commercial accounting of energy (AIMS CAE).
Key Results of Project Implementation “Creation of Support Center for Processing and Storage of Data of Rosenergoatom Concern OJSC” in 2014:
- Design and exploration work performed in full scope, including expertize of design documentation under the title of Data Processing Center (DPC);
- Design documentation of the TP stage was prepared under the title DPC Energy Supply System;
- The algorithm for substantiation of changes in electric energy consumption norms for own needs was developed;
- The Plan for Organizational Arrangements was prepared and implemented in order to start DPC construction;
- A set of actions in order to conclude the General Contractor Agreement for construction of DPC were carried out (Investment Committee’s resolution is obtained, Operating Committee’s resolution is obtained, Expert Commission on Capital Construction’s resolution was obtained, and competitive procedures were complied with).
Key Results of Project Implementation “Information System for Project Portfolio Management” (ISPPM) in Rosenergoatom Concern OJSC and Its Subsidiaries in 2014:
- The ISPPM system was introduced into commercial operation in the Concern; the implementation of the project REA-B-KSP-1 “Transformation of IT Architecture of the Information System of Project Portfolio Management and Updating KSP Methodology” commenced. As a part of the project, in 2014 the requirements for NPP construction schedules were updated and specific modules were developed in order to automate control processes over preparation of management reports during implementation of capital construction projects. The information system is about to be introduced into pilot operation. For 2015 we additionally plan work on extending the list of projects to be planned and monitored using the Concern’s ISPPM;
- Starting from 2014, the reporting of investment projects and activities of the Concern’s subsidiaries shall be submitted to Rosatom State Corporation in the ISPPM system as a part of the second rollout stage in order to facilitate monitoring of the investment activity.