Long-term Investment Programme
Capital investments in 2014-2019 are mostly allocated to refitting and reconstruction of the grid complex (over 84% of the total investments) required due to a high level of wear and tear of fixed assets. The share of investments in new construction in the long-term investment program accounts for 15 % of the total volume of investments.
The long-term investment program approved by the executive governmental authorities of the regions provides for a planned volume of capital investments for 2014-2019 in the amount of RUB 26,103 million, exclusive of VAT. The planned financing volume is RUB 30,009 million, including VAT. The planned commissioned fixed assets — RUB 27,635 million.
It is planned to commission the following capacities:
- electric lines 4,264.35 km;
- transformer capacity of 1,938.74 MVA, and the increase in the input capacity will amount to 1,154.27 km and 1,938.74 MVA.
The volume of planned capital investments for the period 2015-2020, RUB mln (excluding VAT)
As the diagram shows, the chain annual growth rates are: 2016 — (-14%); 2017 — 39%; 2018 — (-15%), 2019 — 8%, 2020 — 6%. The projected decline in capital investments in 2015-2016 and 2018 is due to the deteriorating economic and financial condition of the Company related to the restriction of growth rates of tariffs for electricity transmission services.