July 12, 2007. IBS completes a consulting project for JSC HydroOGK, one of Russia’s biggest power generation companies. During the project IBS carried out a package of measures to analyze costs and minimize risks of ownership of the company’s property, land and water assets.
JSC HydroOGK has a large geographically distributed holding structure. The holding restructuring plan provides for subordinate and dependent companies to be taken over by JSC HydroOGK as branches. The project was initiated in order to minimize risks of restructuring, ownership and use of property and assets and to optimize ownership costs. IBS won open single-round bidding and was selected as the project contractor.
During the project IBS surveyed property, land and water assets of JSC HydroOGK and clarified their legal and business status, including field surveys of hydroelectric power plant facilities in 18 Russian regions. IBS gathered, organized and analyzed materials on more than 350 land assets in use, 2,000 real estate properties, and also information on lease and tax payments in 2004-2006 for 23 legal entities being subordinate and dependent companies of JSC HydroOGK.
Given the current legal and regulatory situation, regional specific regulations governing land and property relationships and the established land use structure of JSC HydroOGK, IBS proposed ways to optimize land use, cut land payments and decrease risks of ownership of real estate of subordinate and dependent companies.
As the result, JSC HydroOGK was provided with an analytical report on the status of title documents and certificates, availability of land management, engineering and other documents for land plots and other real estate. Based on an analysis of the established land use structure and the regional specific regulations governing land and property relationships, IBS produced a list of recommendations and measures to cut costs of ownership and use of assets of JSC HydroOGK.
“Unavailability of full and up-to-date information on real estate can lead to inefficient use and added risks of ownership of assets. This project aimed to lower such risks, including risks of the holding restructuring, which is underway now. Based on this project and according to the list of measures prepared by IBS, JSC HydroOGK intends to pursue efforts to optimize costs and minimize risks of ownership of land, property and water assets, for each of the subordinate and dependent companies”, says Natalia Koptelova, Director of Register Systems Department, IBS.
The project was completed within three months.
Profiles of the companies
Open Joint-Stock Federal Hydrogeneration Company (JSC HydroOGK) is one of Russia’s largest generation companies by installed capacity. 100 per cent of shares in JSC HydroOGK are held by OAO RAO UES of Russia. The target structure of JSC HydroOGK is currently being shaped. After the restructuring is completed, JSC HydroOGK will unite approx. 50 hydroelectric power plants with the total installed capacity of 23.3 GW. http://www.gidroogk.ru/
IBS is the leader in the Russian IT and consulting market. It is part of IBS Group. For more information about IBS please visit http://www.ibs.ru/
For further information please contact Lada Scherbakova, PR Director, IBS. Phone: +7 495 967-80-80, e-mail: lada@ibs.ru.
On April 17, 2007 IBS and Borlas Consulting Group announced merger and formation of the new merged company having estimated FY’2006 consolidated revenue of USD 380 million (US GAAP), the total staff size of over 3,500 (including over 1,500 certified consultants) and over 50% aggregate services proportion in the revenue. 84 of Russia’s top 100 companies are customers of IBS and Borlas Consulting Group. The merged company is the absolute leader in the business applications and management consulting market (over 20% of the market) and the largest IT services company in Russia and Eastern Europe.
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