The Board of Directors of Generation Company Four of the Wholesale Market of Power and Energy (WGC-4) decided that the measures toward issuing additional shares should be among the priorities of the Company's activity aimed at attracting investments. The Board commissioned the Director General of WGC-4 to hold a bidding to select a consultant responsible for preparing and supporting an additional issue of WGC-4 shares and present a relevant candidate for approval by the Board of Directors not later than August 31, 2006.
WGC-4 is on the list of RAO UESR's pilot projects designed to attract investments in the construction of new generating facilities. The priority investment projects, which implementation is planned by WGC-4 to be financed through the funds raised by issuing its additional shares, include the construction of power unit CCP-800 (combined-cycle plant) at Surgutskaya TPP-2 and CCP-400 at Shaturskaya TPP. The exact term and parameters of the additional share issue would depend on the decision of RAO UES of Russia, which is the core owner of the Company. The discussions held at present consider three scenarios for additional issue sizes, depending on how the Holding Company's share in the authorized capital WGC-4 would be decreased: down to 75% plus one share, 50% plus one share, or 25% plus one share. It is expected that WGC-4 will be able to raise about 7.8 billion rubles, 31.7 billion rubles, or 103.4 billion rubles respectively.