www.caepco.kz tel: 8 727 2584948, e-mail: pr@energy.kz

CENTRAL-ASIAN ELECTRIC-POWER CORPORATION jSC (CAEPCO)

news №2 (10)

March-April 2016

Installed capacity has been increased by 18,6% Modernized capacity amounted to 48,5%

Electric energy (MW) Heat energy (Gcal/h)

2009 2010 2011 2012 2013 2014 2015

942

2 771

909942

2 771 2 691

974

2 881 2 895

1 061 1 076

2 932 2 958

1 117

2009 2010 2011 2012 2013 2014 2015

930 930 897 897 897 787 575

12 1212

77164 289

542

48,5%

51,5%

Modernized Not modernized

CAEPCO JSC key indicators:

(for 2 months of 2016)

1 904 thous. Gcalheat energy generation

1 308 mln kW.h electric energy

generation

1 122 mln kW.h transportation and distribution of

electric energy

1 463 thous. Gcaltransportation and distribution of

heat energy

1 141 MWinstalled electricity

capacity

2 918 Gcal.hinstalled heating

capacity

The Board of Directors meeting of Central-Asian Electric Power Corporation JSC (CAEPCO JSC) took place in Almaty approved the Strategy for 2016-2020. The document defines priorities, resources and sequence of actions for achieving strategic goals and objectives.

According to the document, the strategic goal is to establish vertically integrated private power energy company, providing consumers with reliable and uninterrupted services through synergy of streams of generation, distribution, transmission and guaranteed sales in the field of electricity and heat.The Strategy outlines that CAEPCO jSC strives to achieve the best industry standards and practical development of international standards in the environment. The adopted document takes into account the objectives defined by the state program «Nurly Zhol» to strengthen the energy infrastructure of Unified Energy System. Also the Corporation’s development strategy takes into account the requirements provided by

the development of modern energy market and global trends, such as the development of alternative energy and energy efficiency and its conservation.Pursuant to the Strategy for 2016-2020, the Corporation will continue to implement the equipment modernization investment program oriented to the increase of generation, reduction of losses at electric and heat power transmission and improvement of environmental parameters. As in the previous practice, the emphasis will be laid on the improvement of corporate governance system and HR policy, introduction of automated enterprise resource management system. Adopted document develops and adds

(continued on page 2)

CAEPCO JSC STrATEGy AIMS TO ADvAnCED ExPErIEnCE

6,7%

18,6%

1,3%

98,7%

4417%

www.caepco.kz tel: 8 727 2584948, e-mail: pr@energy.kz www.caepco.kz tel: 8 727 2584948, e-mail: pr@energy.kz

nEWS

Employees of the Company have tried to show a rich coloration of the Nauryz beloved of all. Vivid garments, abundance of dishes, and most importantly, smiles of guests have become an adornment of the celebration. Having observed all traditions, hospitable hosts have met people arrived at the party with carols and national dances. The best known east tradition – blessing of the Nauryz Bata –

rEvIvInG TrADITIOnSPAVLODARENERGO JSC has flung its door open for the celebration of the largest holiday of all people of the East – nauryz-Meiramy

AMOnG FrIEnDSIn Nauryz Meiramy, energy workers of SEVKAZENERGO JSC visited children of the Alakai kindergarten and residents of the regional children’s home Teaching staff and children of the kindergarten have prepared a whole concert program with national songs, dances, and traditional Kazakh games; and the “Zhuldyzdar” family has offered the energy workers with the Nauryz Kozhe (traditional drink).

In 1969-1970, the rated output power of the Petropavlovsk CHPP-2 achieved an unprecedented figure – 470 MW. Later, the power was reduced to 405 MW, and starting from 80-s of the last century – to 380 MW in the result of increase in heat energy consumption by the city. In 1974, the power plant achieved record-breaking indicators of power generation – 3.1 bln kWh. In 2016, power engineers plan to improve the achievement: commissioning of the turbine set No.5 after the full replacement thereof will facilitate it to a considerable degree.“At the present moment, only 22% of the total scope of turbine construction is mounted. Only 50% of equipment necessary for construction has been delivered to the power plant. The old foundation has been removed in full, and a new one is almost

On THE WAy TO rECOrD-BrEAKInG CAPACITIES

Petropavlovsk CHP-2 of SEvKAZEnErGO JSC performed annual energy and resource-saving measures aimed at reducing fuel consumption and increasing efficiency of existing plant equipment.

The holiday has been held in the CAEPCO JSC head office in Almaty. Traditionally, Kazakh sport tournaments – a tug-of-war, Asyk Atu, and the Dastarkhan (festive table) with eats and drinks and with an indispensable attribute – Nauryz Kozhe

nAuryZ – HOlIDAy OF rEnOvATIOnnauryz, symbolizing renovation and spring, for many years is one of the recognized national holidays in Kazakhstan. Thousands of staff of CAEPCO JSC Group in the regions of presence, each in its place, together welcomed the arrival of nauryz.

– have become a set piece of festive program.According to employees, Nauryz attracts and joints people, and promotes the mutual understanding between people of various ethnic origins living in Kazakhstan.

A concert, in which performances of professional entertainers have been interleaved with creative events prepared

Employees of the Akmola Electricity Distribution Company JSC and its subdivisions have worthily celebrated the nauryz holiday. The holiday has taken place outdoors in front of a big white yurta placed in the yard of the head office.

by employees of the Company, has been held during the event. Also, a culinary mastery contest has been held. The top position has been awarded to employees of the Accountant Department. Its festively laid table ready for a party has been full of national dishes of nations of Kazakhstan. Fervor has been given to the holiday by sport tournaments, the most cheerful of which was a tug-of-war.

CHEErFul HOlIDAy

ready by now. Underground utilities are also in the process of dismantling. Start-up of a new turbine, which is planned for November of 2016, will increase the rated output power of the power plant by 62MW. It will achieve 541 MW. Efficiency of a new turbine set No.5 will be up by 11.2%, and a wear for all of turbines will decrease by 9.82% and will be amounted to 44.44%. Moreover, thanks to the commissioning of a new turbine an additional generation of electric power will be 52,080 kWh average monthly, and a saving for coal – 3,838 tonn for a conventional year”, - notes Radiy Aitikeyev, Chief Engineer of Petropavlovsk CHPP-2 of SEVKAZENERGO JSC.Dismantled Р-33-90/1.2 Skoda turbine set will be replaced with the Т-95/105-8.8 turbine set No.5 manufactured by the Ural Turbine Works in Ekaterinburg.

Funding optionsand sources

•Reconstruction and modernization of production assets, construction of new assets;• Refinancing of current loans;• Comfortable cash position.

• EBRD and ADB;• European and Asian capital markets;• Local bonds market.

• Funding centralized on group level;• Flexibility through diversification of funding sources and maintenance of sufficient back-stop facilities.

Financial performance of Strategytendencies of the Corporate Strategy for 2010-2015, which is successfully implemented to the full. Over the expired period, assets of CAEPCO jSC have increased more than thrice, total capacity has increased by 18.6%, overall production of electric power has increased by 21%, hazardous substances emissions have considerably reduced (as for ash the reduction is 72%), business profitability has increased by 40%. The state policy aimed to the support of electric utilities has played a big role in the achievement of these results. In particular, the Cap Rates Program that had allowed power industry enterprises to accumulate investment resources for the implementation of projects for the reconstruction and modernization of generating assets equipment was in place in Kazakhstan from 2009 to 2015. Total volume of investments under the Cap Rates

Program from 2009 to 2015 was amounted to 988 billion KZT, including 74.9 bln KZT (or 7.6% of the total volume of investments over the republic) of CAEPCO jSC’s assets channeled to the reconstruction and modernization. Besides monetary funds under the Cap Rates Program, CAEPCO jSC raised borrowed funds of international financial institutions such as EBRD, ADB for the upgrade of CHPP equipment, electric and heat networks.Pursuant to the development Strategy for 2016-2020, CAEPCO jSC will continue a methodical work on the improvement of performance and environmental indicators following a mission of consumer life quality improvement and creation of conditions for regional economic development. Implementation of the challenges within the framework of the Strategy will allow the Corporation to retain achieved leading positions on the electric market of Kazakhstan.

Funding strategy

Funding need

CAEPCO JSC STrATEGy AIMS TO ADvAnCED ExPErIEnCE(continued from page 1)

nAuryZ

BE rEADy FOr CHECK!

In March of 2016, a corporate workshop for risk managers and auditors of the CAEPCO JSC Group of Companies, on which the Moscow specialists of KPMG have imparted their experience on the subject “Internal Audit in Capital Construction”, has taken place.

Approaches to checks, common checking techniques and indicators in capital construction, and possible consequences, to which weak control functions lead, have been considered during the workshop. Besides, auditors and risk managers have refreshed their knowledge in the field of cost estimate determination and cost estimate verification procedure. According to employees, the workshop has allowed studying the wide experience in works on a complex analysis of counterparts and a technical expert examination of investment projects on stages of construction and repairs. Application of new knowledge will allow increasing the overall effectiveness of capital construction projects implementation in the CAEPCO jSC Group of Companies.

has not been forgotten. The guests have been offered with the main Nauryz drink - Nauryz Kozhe and invited to Dastarkhan (festive table). Well, it became the custom that the more generous the Nauryz will be celebrated, the more successful will be a year. Hence, there is a plentifulness of festive table, folk customs and traditions related to the Nauryz.