Mr Putin's opening address:

Good afternoon, colleagues,

A tragic accident happened at the Sayano-Shushenskaya Hydroelectric Power Plant just over a month ago, on August 17. Dozens of people died in that man-made disaster, which did tremendous material damage.

A special governmental commission was set up to supervise the relief efforts. Today we will hear a report on the preliminary results of its work.

The investigation of the reasons for the accident has not been completed yet. I would not like to make premature statements, as this could influence the results of the investigation. It is above all for specialists, who, I hope, will work professionally, and reach their conclusions.

At the same time, I believe it is necessary to say again that the investigation must be conducted as carefully and objectively as possible. One of its results should be a change in the rules of operating hydropower plants and all other large and technically complicated facilities.

The undivided priority should be given to technological safety and the protection of people's lives.

The point at issue is to amend industrial safety legislation, and in particular stipulate strict requirements to the workers' qualifications and their personal responsibility.

We should also formalise mandatory technical maintenance of technically complicated and potentially hazardous equipment by the companies that produced it. In such complicated cases and regarding such complicated hydroelectric facilities as power plants, we should probably introduce data recording equipment similar to aircraft's black boxes.

It would be irresponsible and even criminal to save money on safety or entrust repairs to companies that are "affiliated" with anyone, but especially with the management of facilities, companies that usually lack requisite experience and skills.

By the way, I hope very much that the investigating agencies will work effectively but not longer than is stipulated by law, and that they will say clearly and unambiguously if there were violations in the exploitation and repairs at the plant. And if there were such violations, they must tell us who is to blame.

Another important issue is the strengthening of state technological monitoring. Just to remind you - the Sayano-Shushenskaya Hydroelectric Power Plant had all the requisite permits and licences and was inspected in 2008. Unfortunately, none of this saved it from the tragedy. This means that the control function was not exercised properly.

There is one more problem in the Russian power industry - we need to synchronise regulation at the systems operator - power plant level with due account of safety requirements. Professionals know what I am talking about.

On the whole, we must adopt a comprehensive programme to enhance the safety of hydropower plants, with the priority task being to inspect equipment whose malfunctions may lead to accidents and other grave consequences.

You know that the federal Government, the regional authorities, and RusHydro have adopted decisions to provide financial assistance and support to the families of victims and those who are listed as missing. The Government has allocated them one-time assistance in the amount of 1 million roubles. RusHydro also provided assistance and support to them, and several other payments have been made.

However, social assistance must not be provided in this case on a one-time basis. We must help the families of the victims to resolve their vital long-term problems, such as housing, jobs, and education for their children. We must also provide jobs to all workers of the power plant for the duration of repairs and reconstruction.

I would like to hear everything you have to say on the issues of support to the people.

Now to the issue of the plant's reconstruction.

A decision has been made to speed up the construction of the onshore spillway. I spoke about it during the meeting at the Sayano-Shushenskaya Hydroelectric Power Plant. As much as 4.3 billion roubles will be allocated from the Government's reserve for this purpose this year.

These are targeted allocations. The construction of the spillway will ensure the safety of the power plant and the waterworks located downstream on the Yenissei. It will also create additional guarantees against the flooding of adjacent territories.

In light of this, I request that the Minister of Energy and other directors on the RusHydro board personally monitor these efforts. This is extremely important in view of next spring's seasonal floods.

The Ministry of Energy has drafted a schedule of reconstruction of the power plant. According to it, the power plant is to resume electricity production in 2010.

I am by no means encouraging you to do a rush job. But I would like to hear the opinion of professionals today - can we do it by the deadline I have mentioned? Do you have any proposals on financing the reconstruction work?

And lastly, the Sayano-Shushenskaya power plant played a crucial strategic role in electricity supply in Siberia. The accident has called for making major changes to the system of electricity supply in the region.

It has increased safety demands to other generating companies, above all thermal power plants and grid facilities, especially in light of preparations for the autumn and winter seasons.

These are the issues wee need to discuss today.

Sergei Shoigu: Thank you. Mr Putin, the accident at the Sayano-Shushenskaya Hydroelectric Power Plant destroyed a total area of 1,200 square metres of the main structure of the engine room. Ten units were put out of operation.

An anti-crisis management system was promptly established to deal with the aftermath of the disaster. The rescue efforts involved more than 2,500 people, over 200 units of equipment, including 11 aircraft and 15 watercraft, the Ministry for Emergencies, rescue workers, canine teams, specially trained divers, and other specialists.

Robots, remote controlled underwater vehicles, and sonar were all used extensively. The required equipment, including mobile electric generators, deep well pumps, and engine driven pumps were supplied to the disaster area from the state equipment fund and the Ministry of Emergencies reserves. Sorbent agents were used to control oil pollution in the Yenisei River.

Rescue teams saved 14 people and recovered 74 bodies from the rubble. One person is missing - Maria Rao, who was born in 1962 and worked at the plant as a wall painter.

Fire and rescue teams from the Ministry for Emergencies and other organisations worked alongside contractors to dismantle and remove 9,200 cubic meters of the rubble, pump out more than 300,000 square meters of water, set up 9,600 meters of shoreline sealing, and collect more than 1,150 tons of oil-polluted water. Four hundred and ninety-eight flights were made by aircraft, including 302 flights to neutralise oil pollution in the Yenisei River.

More than 700 tons of sorbent emulsions were used on over 1,000 square kilometres of the river, and about 1,000 tons of cargo were delivered. Sixty-four divers from the Ministry for Emergencies and other organisations closed turbine gates in the tail-bay, and searched for victims in the flooded engine room.

They worked for more than 350 hours underwater, mostly at night. After analyzing the structure of the engine room, experts from the Ministry for Emergencies assessed that there was no threat of collapse.

Psychologists from the Ministry for Emergencies' emergency aid centre provided group and individual psychological counselling to people whose relatives have been killed or injured by the accident. All in all, they have received 1,898 requests for counselling.

Mr Putin, at present we are carrying out a series of measures to stabilize energy supplies and mitigate the consequences of the disaster under the guidance of the Government Commission. A system of domestic warning and emergency efforts has been put into place.

The Federal Fire Service is operating around the clock at the station because more than 430 fires have broken out at the plant from August 17 to this day.

The accident at the Sayano-Shushenskaya hydroelectric power plant is unprecedented in its character and scope. It was one of the biggest disasters by all measures, including the scale of destruction, the decrease in energy generated, the number of human lives lost, and the losses to the economy of the region and the country as a whole.

In this context, we need to pay attention to a number of problems that require prompt solutions.

First, there is a proposal to make it mandatory to set up fire and rescue teams at a larger number of facilities, because they are vital for national security. The list previously endorsed by the Government contained 445 major facilities, but the Sayano-Shushenskaya hydroelectric power plant and a number of other RusHydro plants were not included on it.

Secondly, it seems sensible to amend the law to toughen the requirements for participants in public tenders and auctions for providing repair and maintenance services and supplying equipment for vital facilities, critical for the national economy. It is necessary to change fundamentally the legal procedures for preparing and holding tenders and carrying out contracts.

Third, I think the State Duma must step up its preparations for the second reading of the federal draft law mandating that the owners of dangerous facilities have liability insurance for disasters, and finally adopt it in accordance with established procedure. I would ask you to support this proposal.

Vladimir Putin: Thank you. Those who planned to make a speech will now have time to do so. Then we will discuss their reports and share our opinions. Ms Golikova, could you please tell us about social support for the families of the people who were killed or injured in the disaster, or are still missing.

Tatyana Golikova: Thank you. Working groups from the Ministry of Healthcare and Social Development, Rostrud, and the Federal Medical and Biological Agency have worked alongside the Khakassian Government and the RusHydro Company to coordinate the medical and social assistance to the families of victims.

At present, 75 people have received lump sum payments of one million roubles in financial assistance; 121 people have asked for medical assistance, and 12 people have been treated in hospitals.

We have given out 100,000 roubles from the federal budget to the victims of the accident. Accident reports have been compiled for 15 people, and the lists of those who have received payment sent to the Finance Ministry. New payment lists and accident reports are being compiled now.

Accident reports have been compiled and endorsed for monthly and lump sum insurance payments to the 88 families of the dead and injured. The money will come from the federal Social Insurance Fund.

Insurance payments to the families of the workers who lost their lives have been made, including 63 lump sum payments worth a total of 5.9 million roubles (an average of 93,600 roubles per family), and 78 monthly insurance payments worth a total of 777,700 roubles.

In line with the Government's August resolution, four million roubles will be used to provide treatment for the victims at health resorts.

As of today, 120 people have asked for this treatment in October and November, and 15 adult vouchers have already been issued.

The Pension Fund has identified 39 families eligible for survivors' pensions after the loss of a breadwinner, and 37 families have applied for them. As of today, survivors' pensions have been granted to 63 dependents, and social pensions to 27 people, including three pensions worth more for dependents who lost both parents in the accident. Survivors' retirement pensions have been granted to 36 people, as well as to 50 children and 13 widowed spouses with children.

In addition to that, the Pension Fund has decided to allocate up to one million roubles to the Republic of Khakassia for additional lump sum payments to non-working pensioners whose relatives died as a result of the accident.

The RusHydro Company has made similar payments. We have reached an agreement with RusHydro for the purchase of 16 flats for minors, including orphans, who are in need of better housing. Four flats have already been bought, and documents are being processed for the acquisition of another one.

In addition to that, RusHydro executives have decided to pay pensioners who are closely related to the victims 1,000 roubles per month for five years.

Nineteen children have undergone treatment in the Metallurg medical centre, and six children are there now on Mother and Child vouchers. In the near future, our ministry's vouchers will pay for another ten children to visit the Belokurikha sanatorium. Eighteen children will be treated in the Orlyonok and Okean children's centres before the end of the year.

Additionally, in the near future we are planning to create public jobs for 400 people at the hydroelectric power station, and find jobs for another 100 unemployed people at different locations. Job consultations have been given to 27 people, and 16 of them have been provided with jobs. On September 2, a supplement to the labour market regional programme for Khakassia was endorsed, and our ministry is ready to provide the appropriate funds for it.

Four orphaned minors have been found guardians, and another four children were accommodated at childcare centres. All school students from the families of the dead and missing have been provided with textbooks and given 10,000 roubles for the purchase of clothes and shoes for the new academic year. Education for the children of all victims will be paid for by the Government.

Round-the-clock medical aid is being given to the families of victims, and social workers continue helping them at home. Twenty more day hospital beds have been installed at the outpatient clinic in the village of Cheryomushki. At the request of the Republic, the Russian Academy of Medical Sciences and our ministry will provide high technology medical assistance to all members of the victims' families.

In addition, in the near future 39.9 million roubles will be transferred to the Fund of Mandatory Medical Insurance in Khakassia, in accordance with a directive you signed.

In conclusion, I would like to say that in cooperation with the Ministry for Emergencies and the Ministry of Justice, we have prepared a draft of a federal bill that would introduce changes to Article 10 of the Federal Law on the Protection of the Population against Natural and Man-Made Disasters. The purpose of the bill is to grant larger powers to the Government to distribute additional material aid to the victims of disasters. At present, it is being considered by the Government. It was submitted to the Government on September 9. Thank you.

Vladimir Putin: Thank you.

Mr Zimin, during our first video conference conducted from this very room, we said that the leadership of your Republic should be more active in tackling social problems. We also spoke about it when we met during my visit to Khakassia. What has the Republic done to address these problems?

Viktor Zimin: First of all, on behalf of the people of the Republic of Khakassia and the regional administration I would like to express sincere gratitude to the Government of the Russian Federation and the Ministry for Emergencies for organizing diverse forms of assistance to Khakassia in cleaning up the aftermath of the Sayano-Shushenskaya Hydroelectric Power Plant accident.

The top priority for the regional government is to fully implement the complex of measures of social support for the victims and families of those who died in the catastrophe and secure power supply to the region during the winter period.

Mr Prime Minister, the following has been done pursuant to your instructions on relief to the victims. Social workers, specialists from the city of Sayanogorsk and RusHydro have been attached to every family of the dead and missing to accompany them and render all possible support until all the problems are solved.

A data base of social passports containing information on all the needs of these families has been created. Urgent problems are addressed immediately.

The Republic's Government has ordered lump-sum payments to be made to the families of the dead, missing and injured out of the Reserve Fund of the Government of the Russian Federation.

I am reporting to you that as of September 16 the full amount of material assistance to the families of the dead and missing, 75 million roubles, has been delivered. The first part of the lists with the names of 15 accident victims has been sent to the Russian Finance Ministry so that 100,000 roubles be paid to each of them.

The regional branch of the Pension Fund of Russia in the Republic of Khakassia has authorized 49 pensions: on account of loss of breadwinner, to all the children of the dead, and 13 pensions to the wives of the dead. A list of retired parents of the dead containing 44 names has been compiled for the purpose of rendering material assistance out of the Pension Fund of the Russian Federation.

The regional branch of the Social Insurance Fund for the Republic of Khakassia has paid lump-sum insurance to 113 recipients and monthly insurance premiums for 77 recipients, as family members of the people who died in an industrial accident. Five orphaned children and children left without parental care have been taken under guardianship.

The students who are children of the victims and who study for a fee at state higher professional education institutions have been relieved of tuition payment and have been provided with free accommodation at the student hostels. The issues of rehabilitation and health improvement of the members of the families of the dead and injured at Republican social facilities have been solved. Fifteen persons will be given treatment before the end of the year and six persons are under treatment at present. Nineteen children of the dead and injured during the accident have already been to healthcare centres. Ten children will receive vouchers of the Ministry of Healthcare and Social Development to spend vacations at resorts in September and October this year.

The regional branch of the Social Insurance Fund is working to provide accommodation at sanatoria and holiday resorts for the injured and members of the dead. A total of 126 people have applied, 11 persons have received vouchers for sanatoria and health resorts. All the applicants will be issued vouchers before the end of the year.

An agreement has been reached with RusHydro on making 16 apartments available. Mortgage and consumer credits taken out by the families of the dead before the accident are being repaid. As of today, 28 loans worth more than 6.5 million roubles have been paid back.

I assure you, Mr Putin, that all your instructions on social assistance to the families will be fully carried out. I believe that the programme of social assistance to the members of the families of those who died or were injured during the accident at the Sayano-Shushenskaya Hydroelectric Power Plant should continue until the child born on the day of the disaster comes of age, that is, until 2027.

Regarding power supply to the region during the coming autumn and winter period. As a result of the accident on the Sayano-Shushenskaya Hydropower Plant the Siberia Power Grid faces problems with power distribution. Several issues have to be solved to ensure stable functioning of the power industry in Khakassia. In particular, the equipment at the power grid substation needs to be in good repair. As of today, the use of the money allocated for the repair of the said facilities in the Republic as a whole is proceeding according to schedule. Small boiler rooms in small municipalities will be the objects of particular attention.

I think it would be practicable to hold training and tests of the staff employed at heating facilities against the possibility of unforeseen situations.

An interactive map of Khakassia is being established, a kind of situation review centre indicating all the necessary facilities, fuel stocks in boiler rooms and other important information to provide a full picture of the state of energy supply in the Republic in winter time.

It is necessary to tackle the issue of energy saving. In the opinion of energy experts, Khakassia has never seriously come to grips with this issue. Energy saving is also important because heat generation in Khakassia is much more expensive than the electricity that used to come from the Sayano-Shushenskaya Power Plant.

The headquarters to ensure sustained power supply in the Republic meets every week. All the structures responsible for power supply to the region are working as an efficient team and are closely monitored by government bodies. Strict adherence to all the safety rules at energy facilities in the region will enable Khakassia to go through the autumn and winter period in regulation mode.

Mr Putin, permit me once again to express appreciation on behalf of the whole Republic for your position during your working visit to Khakassia, to the Sayano-Shushenskaya Hydroelectric Power Plant. The decision to rebuild the station was a morale booster for everyone. We are aware that in several years' time we will have practically a new station which will serve the Republic and Russia for many decades.

Thank you, I have finished my report.

Vladimir Putin: Thank you.

I give the floor to Vassily Zubakin from RusHydro. Also about the relief effort and social support.

Vasily Zubakin: Mr. Putin, we began providing social assistance to the families of the deceased and injured in the first days after the disaster. This year, the board of directors approved a non-repayable transfer of 185 million roubles for the purpose of eliminating the social consequences of the disaster.

To date, one million roubles in compensation has been paid to each affected family at the company's expense, as well as material aid worth two months of salary for deceased and missing employees.

Furthermore, as we agreed with the Ministry of Energy, we are also making the following payments. We are paying a year's salary to all the dependents of a deceased employee. Forty-four families will receive these payments for 75 dependents. Lump sum payments worth up to 150,000 roubles will be given to injured victims, depending on the severity of their injuries. And scholarships will be given to the family members of victims and missing persons, both to students currently in university and to those who will attend university when they reach the appropriate age, with this scholarships adjusted to inflation.

What is more, we are working to find employment for family members of the deceased at our hydroelectric power station and at other energy companies in Khakasia. As of today, 35 people have found jobs.

A system for providing psychological counselling has been set up. Three counselling centres are in operation, including one for children and one for employees located directly at the power station.

Today, Mr. Putin, a new cafeteria that can serve 500 people per hour began operation. We have stopped using field kitchens and have already made the transition to full-time food service.

Two special vehicles have been purchased for the emergency ambulance centre. A centre for bathing and laundry will begin operation on October 20.

The issue of building a memorial chapel has been decided. On September 25 of this year, 40 days after the disaster, the cornerstone will be laid at the burial site of the deceased.

Khakasia's social services and community leaders have set up a special commission that will decide on additional material assistance from charitable foundations based on individual applications from relatives of the deceased and injured. The charitable foundations are financed primarily with the contributions of Russian energy companies.

Our company has established a permanent social centre to work with families.

Besides the extremely grave human losses, our company lost a fourth of its total capacity and around 30% of its effective power yield. Accessible resources for investment have been drastically reduced.

At the same time, the company is fulfilling all of its obligations to suppliers and consumers. The company's investment needs have sharply increased because of the need to finance reconstruction, as well as the goals you set to expedite the construction of a shore spillway and the Boguchansky hydroelectric power station.

This has forced the Ministry of Energy and us to make profound change to the company's investment programme in terms of both the amount and allocation of investment, as well as the sources of said investment. Financing for the corresponding costs will come from funds raised by issuing additional shares, provided that the Russian Federation retains the controlling stake in the company's charter capital.

We have moved to implement the directive issued at a government meeting on September 15, and are rapidly preparing to issue additional shares in order to raise 4,330 billion roubles from the reserve fund through the issue of additional shares.

Taking all of the above into account, the issue of financing all of the aforementioned objectives has been fully resolved. My report is finished.

Vladimir Putin: Mr. Zubakin, I have a question that also concerns Khakasia's leadership. In my opening statement, I called attention to another problem that we must solve - providing employment to the power station's employees while the power station is being rebuilt. What has been done in this regard? What ideas do you have?

I heard about the plans to bring in manpower from other regions of Russia, which is also maybe justified, but what is going to happen to the local people who are now unemployed?

Vasily Zubakin: Mr. Putin, we have broadly analysed the management structure at the Sayano-Shushenskaya power company, its subsidiaries, and all the existing companies associated with it.

I can tell you that the number of employed is not going to be reduced, and there are an additional 60 vacancies that we are filling with residents of Sayanogorsk and Cheryomushki, sending people there for training if necessary. Not one employee will be let go. 

Vladimir Putin: Good. Energy Minister Sergei Shmatko has the floor.

Sergei Shmatko: Mr Putin, ladies and gentlemen,

I thank the Russian Emergencies Ministry on behalf of the power industry for rescue works at the Sayano-Shushenskaya hydropower plant, in which courage, organisation, efficacy and loyalty were displayed.

The Energy Ministry established an operations HQ on your order, Mr Putin, as soon as rescue works were over. The HQ and RusHydro are immediately responsible for plant repair works.

The first stage of the job included urgent repair of the life support system, taking comprehensive stock of the situation, and planning further works.

Electric supply, fire extinguishing, pumping and drainage systems have been repaired for today, and ventilation, pneumatic and lubrication systems are under repair. All workers have proper accommodations, catering and other necessities.

Repair of the turbine room thermal system will finish by November 11 together with the check of structural steel.

The first stage of repairing vital systems is over. Station management has resumed, and the site is ready for full-scale reconstruction, after which it will re-open.

2,112 are working round the clock-1,424 of them from RusHydro Co. There is also a 37-strong Emergencies Ministry team.

The most urgent task is to achieve the safety of the dam and other hydraulic structures. Meanwhile, the dam does not meet its design conditions with all hydroelectric units out of order.

Winter drainage and steady work of the spillway basin are the main objectives now. A winter flood in Minusinsk and the icing of all buildings and units open to the impact of spillways are the greatest hazards.

Up to 2,000 cubic metres/second of flood waters must be sluiced by June I, 2010 to reduce the load on the dam service spillway and the spillway basin. The target will be hit if the initial startup complex opens ahead of schedule, complete with a sluiceway entrance, tunnel No. 1, and a five-stage drop with the greatest possible amount of preparedness.

130,000 cu m capacity will be achieved in the 3rd and 4th quarters of this year, and 145,000 in the 1st and 2nd quarters of 2010. The shore spillway must be ready by September 30, 2011.

Experts and scientists have been attracted to the job.

When ground protection of Minusinsk is ready, the area will be safe against wintertime flooding by the controlled flow of the Sayano-Shushenskaya and Mayanskaya plants.

As we have to acknowledge, survival of the Sayano-Shushenskaya plant in autumn and winter is a critical problem. Laying a heater cable on the roof and the use of deicing chemicals are among recommended measures.

It is also necessary to complete all-round expertise of previous waterwork design solutions.

Mr Putin, you have ordered us to restore the plant entirely. The Energy Ministry has established permanent contacts with design organisations and equipment suppliers.

A preliminary decision has been made proceeding from checks to establish two startup complexes. The first comprises units 5 and 6, which are hit the least. We are ordering relevant equipment. Idle run of Unit 6 will start in December 2009, and Unit 5 in March 2010, on preliminary estimations.

No-load run will improve drainage and the spillway basin somewhat in autumn and winter 2009/10. Unit drying in no-load run will take 3-5 months, on expert estimations, after which the decision will be made whether they can start work.

Units 3 and 4, with damaged equipment and structures, are in the second startup complex. Unit structures are being checked, and equipment has been ordered for repairs. We need a conclusion from the power machine manufacturers whether available equipment can be used in both complexes.

Deadlines for repairs and reopening of the Sayano-Shushenskaya plant units will be more precise when the investigation commission is ready with conclusions on the accident cause, and after unit structures are gauged.

Special attention should belong to detecting disaster causes. Everything must be done for plant safety in the future. A final decision on equipment acceptance cannot be made without manufacturers' conclusion, a thorough safety check, and analysis of Government Investigation Commission conclusions.

As for the other six units, they are beyond repair as examination has shown, and they will be replaced.

Power Machines Co and leading foreign manufacturers have applied for relevant contracts.

A preliminary decision has been made to order the six units to Power Machines Co with consideration for safety and reconstruction deadlines as the main yardsticks, and also because Power Machines Co designed the original equipment for the unprecedented plant.

Our choice has the following advantages: available hydroturbine models and the opportunity to speed up relevant tests.

Previous joint research with RosHydro resulted in a model of a pioneer rotor with improved energy, gravitation and endurance characteristics. Manufacture deadlines have been set.

The ministry, manufacturers' designers, design organisations and maintenance services are elaborating exclusive standards for the new units, proceeding from preliminary commission conclusions.

A production and supply schedule has been drawn and approved by Power Machines.

The manufacturers guarantee maintenance throughout unit service life. All detected design drawbacks will be eliminated. Power Machines will have another contract later-for the four units eventually to replace those currently under repair.

Tentative deadlines for the manufacture of the six units have been approved with account for 18 months of manufacture proper, 2.5 months for transportation, and 3 months for assembly and adjustment. Arrangements for large-size equipment deliveries are being determined. The relevant decision will be made before the end of September, considering labour-consuming preparation of the route.

A diagram network for plant restoration has been approved. Termination of all works has been scheduled for the end of 2014.

The RusHydro Board of Directors has made a decision for a comprehensive and technical audit of the company, which has started. Other power plants are being checked similarly because of detected problems with maintenance affiliates.

Let me speak now about the situation in the entire Siberian electric industry and steps to enhance the stability of electric supplies. If the winter is cold, the maximum consumption of the United Siberian Energy System is expected at 30,900 megawatts. It was 29,862 megawatts last winter, and 31,450 two years ago.

Electricity supplies might be limited when 500 kilowatts necessary for power flow to the Khakas energy system join the grid.

The Energy Ministry and power companies have drawn a plan to guarantee Siberian electric supplies for that time. To verify the fuel-energy balance is among its principal items. The power balance of the United Siberian Energy System has been computed for autumn and winter, imitating Sayano-Shushenskaya plant generation. It revealed the necessity of obtaining additional 2.6 billion kwt/hrs from thermal plants in 2009.

The relevant amount of coal supplies to Siberian electric plants and their schedules have been computed and coordinated with Russian Railways Co. Coal consumption in the fourth quarter will increase by 2.5 million tonnes.

Dynamic response has been enhanced. All control engineers and centres of electric grid companies have undergone off-schedule training in imitation accidents. An all-round training in the compensation of accident losses in situations imitating the available power balance in Siberia will be held on September 25.

Interdepartmental games to be held on October 5-10 will involve major electricity consumers, the Emergencies Ministry and the Khakass regional HQ.

A list of 18 high-voltage transmission lines for 500 and 220 kilowatts has been drawn to enhance emergency preparedness. It envisages four extra lines, which will cut repair time by a third.

The emergency stock of materials and equipment has been increased and brought closer to accident-threatened sites. The control personnel of the systems operator has increased. Live-line maintenance works at the East Siberian 500 kilowatt high-voltage line have been arranged.

Mr Putin, you have ordered to pay special attention to the Itarsk-Abakan-Aluminievaya-Barnaul high-voltage line. We have checked it from air and appointed off-schedule inspections of the line, approaches to it, and substation equipment. Operating instructions to systems operator controllers have been elaborated on emergency switching on to minimize the time of disconnection and the amount of scheduled temporary disconnections in the current mode.

Scheduled repairs of Siberian power plants, with total 7 generating units, to finish before the end of the year, are under special monitoring. We are also checking the readiness of all electric plants for the cold season.

We have determined the amount and schedule of installing power-factor correction units in the projects of the Khakass energy network to enhance high-voltage line reliability. Rostekhnadzor will inspect the technical readiness of certain vital projects and infrastructures to switch to standby electric supplies.

To make the Siberian Energy System more reliable, we have decided to step up the construction of the 220 kV Beya-Askiz line so as to open it in December 2009, and of 500 kV net projects of the Itarsk-Abakan-Aluminievaya transit line to open in 2012.

A proposal has been drawn to speed up the opening of generating capacities in the Abakan, Minusinsk and Berezovo thermal plants to total 1,200 megawatts, to be ready in 2010-2015.

Mr Putin, we are rather tough on power companies where their compliance with investment pledges is concerned. We might postpone construction deadlines in other parts of the country-but the Siberian situation sets a pressing pace.

All this work is done in compliance with orders you gave after the discussion of Sayano-Shushenskaya troubleshooting on August 21.

You have made 33 orders. 18 have been fulfilled, and the other 15 are being fulfilled on schedule. That is all I wanted to say.

Vladimir Putin: Thank you. Oleg Budargin of the Federal Grid Company has the floor. Will the company cope with energy flows?

Oleg Budargin: The reliability programme for the Siberian electric networks has been drawn, approved and launched on your order. It envisages reliability increase, accident prevention and the greatest possible acceleration of repair works.

A list of 25 transmission lines guaranteeing reliable electric supplies to Siberia has been made on the basis of modeling and analysing, and with account for the Sayano-Shushenskaya plant no longer generating power.

Emergency checks of those lines have been made-in particular, from air. We have made a contract with the Emergencies Ministry for inspecting aircraft and deliveries of repair crews and emergency stock.

We have listed urgent repairs. The systems operator has coordinated a relevant schedule with consideration for 73% of all Siberian grid repair works planned for the year finished by August 17. We are working against time but, as Mr Shmatko has said, we have appointed two crews for live-line maintenance works, and another three crews are being evaluated. We are repairing 500 kV line No. 542 now. It connects Novokuznetsk with the Sayano-Shushenskaya plant.

We are implementing an emergency stock programme. Some stock is available even now, and is of great help in accident relief. In particular, the Novokuznetsk-Barnaul line went out of order on September 17. The available stock and emergency crew helped us to cut repair length by the factor of 3. Troubleshooting took us 25 hours against standard 3 days.

We have made priority delivery contracts with electric equipment manufacturers-mainly Electrozavod of Moscow and the Togliatti Transformer Plant.

The Federal Grid Company has reinforced its control and technical monitoring service. People on duty go through drug tests. New stationary lines have appeared. Siberia had 14 before August 17, and now there are 18.

We have established 27 emergency crews stationed close to 500 and 220 kV transmission lines. They have all the equipment and communication means they need, and work round the clock.

The crews will be manned entirely by October 15, and receive all necessary equipment.

These crews employ 389 with 110 special reserve vehicles. Another 541 are employed with repair contractors based in the Siberian Federal District.

We have amended the investment programme with the changed situation. I dare thank the Federal Tariff Service and the Ministry of Economic Development for the urgency with which they confirmed the amendments, and the Finance Ministry for extra 10 billion rouble allocations. We can afford now to comply with the systems operator's demands of grid reliability in 2009-2010.

The absence of the Sayano-Shushenskaya plant demands urgent reactive supply. It is designed as top priority. Static condenser batteries are assembled immediately after delivery in the Aluminievaya and Oznachennoye substations.

The first stage, battery installation at Oznachennoye, will be over by December 15 to finish the whole job by March 1-the day we will also finish the word demanded by the systems operator at Aluminievaya.

We have started the construction of a 22kV transmission line, and I am sure we will cope with it before the year ends.

The Federal Grid Company has commissioned 500 kV outdoor switchgear at Sayano-Shushenskaya for more reliable transmission. We have created new jobs, and equipped maintenance crews with all necessary materials and equipment. A diesel generator has been assembled, and the fire-fighting system restored. We are drawing the technical assignment to modernise the outdoor switchgear.

I do not have anything more to say. Whatever problems might arise are settled on Mr Igor Sechin's headquarters. We have problems with project security-the only that impedes our work. We will join hands with the Interior Ministry to establish voluntary guard detachments from people resident along transmission lines. That is all.

Vladimir Putin: Mr Budargin, do you realise the huge responsibility you and your staff have shouldered? I mean problems due to peak energy demands in autumn and winter, and the flow overloads on the grid. In such occasions, achievements belong to the entire company but if it fails, you alone will be liable as the boss.

It is good that you have said it all out loud. I hope you really understand it. I expect you to work very diligently and responsibly. The situation is far from simple. I hope you know the weak points and will take reliability measures well beforehand.

Mr Semyon Levi, the Deputy Minister of Natural Resources and Environment, has the floor. Mr Levi, what has been done to prevent environmental disaster? What remains to be done? I mean the situation round the Sayano-Shushenskaya plant and the entire environment.

Semyon Levi: Mr Putin, we have established an ad hoc team on the order of the Minister of Natural Resources and Environment to coordinate the performance of our agencies and field services.

The Hydrometeorology, Water Resource and Technical Inspection agencies are making comprehensive monitoring together. We have established extra observation points, and receive environmental reports every six hours round the clock.

The environmental situation is normal now. We will reinforce our observation points again to rule out whatever problems. We have coordinated everything there is to coordinate, and have drafted a Government resolution to change the status of Baikal Lake for more water supplies to the Angara energy network. We have passed the draft to the Energy Ministry for approval.

Our ad hoc team is also engaged in technical inspection to prevent similar accidents in the future. We are ready with a package of proposals and draft laws and Government resolutions to enhance monitoring and inspection. I think we will offer the package to the Government quite soon.

Vladimir Putin: Good. Thank you.

Mr Kutin, I know the job is going on. Please tell us how it proceeds.

Nikolai Kutin, Head of the Federal Service for Environmental, Technological and Nuclear Monitoring: The expert team we have established is ready with a generalised conclusion on the technical causes of the accident. The paper has been passed to the Academy of Sciences.

The five return conclusions we have received from it allow us to draw a scenario of the developments and go over to analyses of the accident. Regrettably, they imply not only technical causes of the accident but also preceding administrative and managerial failures. The work will finish within a few days.

Vladimir Putin: Mr Kutin, you realise quite will that the legal consequences for all involved will depend on the conclusions your Service and its commission make.

I rely on you for highly professional and unbiased analyses, whatever renowned names might occur. We must see to the roots of the accident and know the culprits if there are any and the disaster was not force majeure. Whatever it was, your conclusions must be absolutely objective. When will you be ready with them?

Nikolai Kutin: We will make our last summary on Thursday, and report to the Government Commission after we are through.

Vladimir Putin: Just when?

Nikolai Kutin: We will be ready with conclusions by weekend. We are fully aware of our responsibility.

Vladimir Putin: Good. Thank you.

Mr Novak, let us hear how the Finance Ministry is doing. How are the Government's and other federal efforts funded?

Alexander Novak: Mr Putin, the Finance Ministry has approved today a draft resolution to allocate 4.3 billion roubles on spillway restoration. The sum suffices to finish its first stage in spring 2010. The money will be taken out of anti-crisis budget allocations-450 billion roubles earmarked in 2009. The spillway allocation will be made from the leftovers.

As for Sayano-Shushenskaya plant restoration, we have Energy Ministry and RusHydro proposals here. Restoration cost is estimated at 40 billion roubles in 2009-2013 target prices. RusHydro asks to consider the opportunities for state support through federal allocations of 19.3 billion roubles in 2010-2012 proportionately to its government stock-60.3% for today.

We are studying the matter together with the Economic Development and Energy ministries. The Sayano-Shushenskaya plant might be restored on own and borrowed money alike. We are analysing the financial situation and model of RusHydro with an account for the absence of revenues from Sayano-Shushenskaya, which made roughly 30% of entire RusHydro revenues. We are considering the investment programme and priority expenditures that might be financed out of corporate or borrowed funds.

The Economic Development, Energy and Finance ministries will work together at more proposals to fund Sayano-Shushenskaya plant restoration.

That is all I want to say.

Vladimir Putin: Thank you. Ladies and gentlemen, on the whole, I think the relief of the injured and the families of the dead and missing persons, and the first restoration steps are satisfactory. Thank you.

I believe firmly that further welfare and restoration works will be no worse. Mr Sechin, I expect your regular reports.

Thank you. We are through with this part.

Vladimir Yakunin: A large section of the railway track was indeed washed away on September 21, near the 2232-kilometre mark on the two-track, electrified section of the Kizilyurt-Makhachkala railway. It happened when the canal that runs parallel to the railway overflowed with rainwater. The railway embankment and tracks have been damaged in four places. This led to a train being derailed, because in some places the washout reached two metres.

As far as the different sections are concerned, near the 2231-kilometre mark a total of 340 metres of track going both directions has been totally washed out. The embankment was 1.5 metres high.

Near the 2234-kilometre mark a total of 200 metres of track going both directions has been washed out. The embankment is 1.5 metres high.

Near the 2235-kilometre mark both tracks have been washed out over a length of 1 kilometre. The embankment there is two metres high.

And near the 2237-kilometre mark a total of 300 metres of track going both directions has been washed away, and the embankment is two metres high.

A total of 45,000-50,000 cubic metres of earth are needed for track restoration.

As a result eight cars loaded with steel-welded pipes were derailed. You have seen the incident on video, and you can see what happened. One section of the electrical locomotive is lying on its side.

What measures were taken? As soon as we received the information, we set up a crisis centre and we contacted the republic's leadership. Luckily, there has been no loss of life. But four passenger trains have been blocked. I personally spoke with the president of the Republic to see what can be done to rescue them. I was told that the republican authorities, at our request, have provided the number of buses necessary to evacuate the people stuck on the trains.

People must get food ration kits. Our medical personnel have been brought in. We are working under the direction of the crisis centre alongside the regional authorities and the Ministry for Emergencies. All in all, 300 employees from the North Caucasus Railway are involved in the work. Of these, 190 people are working on the tracks and another 64 are manning the railway machine stations. Sixty-nine more employees are manning track repair trains.

The situation is made more difficult by the continuing rain, which had not let up at least until this meeting started. Access to the site is difficult for this reason. Because tracks were washed away in four different sections, it was difficult to bring in heavy machinery

Nevertheless we have prepared the repair trains and the materials to restore the top layer of the railway bed, including 160 cars of gravel. One hundred and ninety cars of crushed stone have been sent in to restore the railway embankment. We have met with the heads of two gravel plants, and we are guaranteed to get gravel.

On the whole the situation is in the restoration phase. We have received no new information since this meeting began. We are receiving information in real time from the appropriate departments of Russian Railways when necessary.

That's the end of my report.

Vladimir Putin: Once again, how much time will be required to reopen the railway?

Vladimir Yakunin: The trouble is that it is hard to assess how difficult it will be to lift the cars. You can see the head of the North Caucasus Railway on the screen. I think he has the latest information. But it will take 4 hours to restore the infrastructure once the cars are lifted.

Vladimir Putin: Well, let us ask him. You are on location, how much time do you think it will take to reopen the railway?

Vladimir Goloskokov: The situation is complicated because of the heavy rain. The rain is not letting up. Three cars and the locomotive have been lifted, while five cars remain. I think we will be able to reopen the railway within one day.

Vladimir Putin: Do you mean within 24 hours or by midnight?

Vladimir Goloskokov: The railway will be reopened by midnight.

Vladimir Putin: Very well, thank you.

Makhachkala is on the line, Mr Aliyev (addressing Mukhu Aliyev, President of the Republic of Dagestan), what is the situation with flooding and rain in your republic?

Mukhu Aliyev: The rain in the republic, especially in Derbent, is the heaviest we've had in the last 100 years or more. An amount of rain we usually get in four months fell over the last 12 hours. Mudslides have shut off the mountains, destroyed the railway track, and flooded communities.

One hundred and ten houses have been flooded in Derbent, and 78 people have been evacuated from them. The water level will drop before the end of the day, and all the people will be able to return to their homes. Two large villages, each with 700 to 800 households, have been flooded in the Kizilyurt District. The water level there reached 1.5 metres in the morning, but now it has receded to less than 50 cm.

Most people will return home by the end of the day. That will leave only the people who lived in adobe houses, about 60 to 70 people, who will not be able to return to their homes. We will deal with that matter.

As has already been mentioned, there are five passenger trains with a total of 1200 passengers trapped in the trains within the republic's boundaries. The necessary number of buses, more than 40, has been sent to the stations. People have already been taken to their destinations.

The necessary assistance is being provided for rescue and restoration work. The required amount of machinery has been brought to the site of the accident. Other forms of assistance are being provided at the request of the railway workers.

The damage is being assessed. I think we will be able to cope without outside help. There are no victims. One woman has died, but not at this location. The car in which she was travelling was washed off the road into an abyss by a mud torrent. All the other occupants of the car were saved, but one woman died, unfortunately. This is the situation at this point in time.

Vladimir Putin: Thank you. I am aware that the situation is complicated, nevertheless I am counting on your active response, which includes helping the passengers who have been trapped in the trains.

Vladimir Yakunin has said there are four blocked trains. According to my information, there are seven blocked trains. That means a large number of people. According to my information, they are being fed and are getting every kind of help. But this work cannot be properly organized without support from the republic. Please pay attention to this.

Mukhu Aliyev: We are providing assistance and we will continue to monitor the situation.

Vladimir Putin: Very well. In connection with this I instruct the Ministry for Emergencies to assess the situation in Dagestan carefully and to move in and help if necessary, and also to assess the scale of damage.

Because some people lost their homes, it is necessary to evaluate all this on location. Only I urge you, Mr Aliyev, to see to it that nobody destroys anything there deliberately. Unfortunately this has happened in the past. So take a close look, make an assessment and, if necessary, submit proposals to the Government. If necessary we will provide assistance and support.

Please, work with Russian Railways and the Ministry for Emergencies to organise relief for the people who are sitting on the trains now. Organise this work and report back. Is Mr Shkolov (Deputy Minister of the Interior of the Russian Federation) here? We need to ensure the safety of these people, so that there is order and no infraction of the law.

Thank you. I wish you all the best.