The Management Board of Generation Company Four of the Wholesale Market of Power and Energy (OGK-4) has reviewed the 2006 Report on the OGK-4 Procurement Activities. For its needs and those of its subsidiaries, based on the results of 2006, the Company purchased goods (excluding fuel) and services for a total of 4.7 billion rubles. In this connection, the purchasing efficiency (the difference between lots' target and bottom-line prices) was 231 million rubles.
According to the results of 2006, the Company participated in 1,653 procurement procedures, including 458 open biddings. Most purchases were made under the 2006 OGK-4 TPPs Repair Program. OGK-4 makes all its purchases in strict conformity to the RAO UES of Russia standards for procurement activities.
In 2007, the Company plans to increase the number of bidding-based purchases through the B2B-Energo online trading floor, develop and implement the plan of measures aimed to optimize the warehouse reserves of the OGK-4 subsidiaries, and adopt in the Executive Body and the Company's subsidiaries the "Procurement" and "Reference Data" (stock guide) models of the Integrated Automated Enterprise Management System based on Microsoft Dynamics AX.