An important place in the modernising and expanding Kubanenergo infrastructure is held by electricity facilities necessary to the 2014 Winter Olympics, which will be held in Krasnodar Region, in the city of Sochi. At the current time we are actively carrying out work on construction and renovation of Olympic facilities to ensure their timely coming into operation and their reliable and uninterrupted functioning in the future.
The Kubanenergo investment programme for 2011 included construction and renovation of Federally significant electricity distribution facilities stipulated in the Programme for Construction of Olympic Facilities and Development of Sochi as a Mountain Resort approved by Decree of the Government of the Russian Federation № 991 of 29.12.2007.
Capital construction and renovation of Olympic facilities was carried out by making additional share offers, Kubanenergo’s own resources received from technological connection.
The volume of capital investment in Olympic facilities in 2011 totalled 1.9 billion rubles or 76.4% of the plan. The failure to achieve the plan for capital investment was caused by the failure by contracting organisations to fulfill their contractual obligations regarding construction and fitting work and a delay in receiving bank guarantees to make advances of money regarding contracts concluded with contractors. To ensure that plan indicators will be achieved in the future the Company is making claims against contractors in a timely manner.