Sangtuda HPP-1 Directors’ Board advises shareholders not to distribute net profit
12 May 2014
The Board of Directors of Open Joint-Stock Company (OJSK) Sangtudinskaya GES-1, which operates the Sangtuda-1 hydroelectric power plant, convenes an annual general meeting of shareholders in Dushanbe on May 27, 2014.
According to information posted on Sangtudinskaya GES-1’s website, issues related to distribution of net profits, election of new members of the Board of Directors and the Auditing Commission as well as consideration of the annual report and the annual accounting for 2013 have been tabled to the meeting’s agenda.
Meanwhile, the Sangtudinskaya GES-1 Board of Directors advises shareholders not to distribute net profit because it is not secured with cash assets.
The company notes that the Sangtuda-1 HPP last year shipped some 2 billion kWh of electricity to Barqi Tojik (the state-owned utility responsible for generation, transmission, and distribution of electricity in Tajikistan) while Tajik power holding has repaid only 52 percent of its total cost so far.
Tajik power holding reportedly now owes 417.6 million somoni to Sangtudinskaya GES-1.
The Sangtuda-1 HPP is located on the Vakhsh River in Khatlon province, some 160 kilometers south of Dushanbe. The plant, consisting of four units with total capacity of 670 MW, was officially commissioned on July 31, 2009.
The construction of the Sangtuda-1 hydropower plant located some 110 kilometers southeast of Dushanbe began in the late 1980s. By the early 1990s, only 20% of the construction work had been completed, and further construction was suspended due to a civil war that broke out in Tajikistan in the early 1990s. The talks between Russia and Tajikistan on completing the construction of the Sangtuda-1 HPP began in 2003 and in 2004 the parties signed an inter-governmental agreement.
Russian-Tajik OJSC Sangtudinskaya GES-1 was established to complete the construction of the Santuda-1 power plant. Russia’s Inter RAO YeES and the Ministry of Energy and Industries of Tajikistan signed an agreement on the establishment of the company in Dushanbe on February 16, 2005.
Russia owns 75% percent of the shares minus one share and Tajikistan assumes the 25% ownership interest plus one share in Sangtudinskaya GES-1.