In 2007 RAO EES Russia and the Administration of Krasnodar Region concluded an Agreement on Cooperation between the Administration of Krasnodar Region and RAO EES in Realising Work to Provide a Reliable Electricity Supply and Create Conditions to Connect Consumers in Krasnodar Region (hereafter the Agreement).
The Agreement stipulates the following work at 68 Kubanenergo facilities to a total value at current prices of 8 649.7 million rubles excluding VAT:
- constructionof 16 facilities to a total preliminary value of 3 545 million rubles, including seven 110 kilovolt substations;
- renovation of 52 facilities to a total value of 5 103.9, including thirty five 110 kilovolt substations.
Actual capital investment per results for 2011 totalled 624.35 million rubles and exceeded the plan by 23.6%. The plan for 631.57 million rubles of added new assets from facilities included in the Agreement was achieved in the accounting year to the level of 740.26 million rubles, and at the same time 115 MVA of transformer capacity was added compared to the plan for 105 MVA.