Comments of Andrey Mikonin to the article “The prosecution’s assessment”

19 February 2013
A motion of the Petersburg prosecution with the requirement to eliminate violations was submitted to the vice-governor Sergey Kozyrev late December last year. "North-West Energy Engineering Center" ("N-W EEC"), executing the building project of the station, did not provide to the Glavgosexpertiza technical and economical substantiation (TES) of the project, as stated in the motion (the text is available by “Vedomosty”).

Agreement on drafting the project was signed between the Committee on Energy and the "N-W EEC" in July 2005. Expertise approved the project in the absence of the TES on May 18, 2007. However, prosecutors considered it as a violation of federal law "On public procurement", what later led to an increase of the project cost.

The N-W EEC is built since 2006 firstly by the “Sintez” oil company controlled by Leonid Lebedev. In 2011, the construction should be finalized , and the electricity volume should be 570 MVt. The cost of the project was assumed as 18 mlrd rubles. However, in 2008, the “Sintez” has dropped into financial difficulties and could not manage to finalize the construction. In December, 2008 the company has granted 100% of the shares of the N-W EEC OAO (JSC) to the Saint Petersburg Administration. A part of the EEC works since January, 2012. According to the new project, the cost of the N-W EEC amounts to 26, 7, however, the electricity volume is decreased to 500 MVt.

The law "On placing orders" came into force only on January 1, 2006, and thus cannot be applied to the agreement on drafting the project of the N-W EEC, as Kozyrev mentioned in his reply to the State prosecution motion submitted on February 5. The Energy committee is only the Client according to the project, and the N-W EEC OAO (JSC) was acting as investor. That is why the budget funds were not used. The approval of the costs should be executed only in case the construction is financed by the budget funds, explains in his reply to the prosecution the vice-governor.

Yuri Manevich, head of the "N-W EEC" from the late 2005 to 2010, also refers to the fact the project complies with the legal regulations of those years. "We worked strictly on the customer's requirements, otherwise the project could not be approved", says Mr. Manevich to the “Vedomosti”

The prosecutors found out some violations in the procedure of transfer of the EEC to the city. Mid-october 2008, during a meeting at the Saint Petersburg governor Valentina Matvienko the Committee on Energy was obliged to draft a resolution on the obtaining of shares as gift till November 11. However, the resolution was drafted only in mid-December, and the transaction was closed only in February next year. This lead to the growing of the loan obligations of the EEC to 403 mln roubles, according to the prosecutors. This issue is not commented in the letter of the vice-governor at all.

Kozyrev agrees only with the 3rd argument of the prosecution motion, i.e. with the one according the agreement with the “Upravlenie 20 Metrostroi” to 132,2 mln roubles.

The prosecutors ask to take steps to eliminate violations of the law, as well as decide on the liability of the responsible persons. "However, due to the expiration of the limitation period established by law, as well as in connection with personnel changes in the direction of the Committee on Energy finding out those responsible officials is not possible “, indicates Kozyrev. The new heads of the Energy Committee were instructed to take measures strengthening control over the implementation of the program, design and construction of the EEC. The prosecutors did not answer at the request of "Vedomosti”.

"If there were no additional agreements to the contract after January 1, 2006, the law on public procurement cannot be applied to such contract," says partner of the law firm «S&K Vertical» Andrey Mikonin. The limitation period for bringing disciplinary proceedings amounts to one month, but after its expiration another of responsibility may be applied”, says Mikonin.

Petr Tret’yakov

"Vedomosti" № 27 (3289) as of 19.02.2013

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