Procurement Activity

• 8.1 Company Policy for Procurement Activities
• 8.2 Indicators of the Annual Overall Procurement Program
• 8.3 E-commerce Implementation

Company Policy for Procurement Activities

Guidelines for JSC "Lenenergo" procurement activities are the openness and transparency of the procurement, increase of efficiency level at competition of procurement participants, achievement of maximum economic effect caused by carrying out of measures in procurement activities.

JSC "Lenenergo" defines the following essential goals to increase the efficiency in procurement activities:

• supplying the Company with quality facilities, mechanics, materials and services for reasonable prices;
• procurement activities at competitive basis;
• high level of organization at procurement activities;
• high level of objectivity at carrying out of measures within the procurement activities;
• achievement of economical efficiency in procurement activities.

Procurement activity in JSC "Lenenergo" is regulated by the following documents:

• Regulations on the procedure for regulated procurements of goods, works and services for the needs of JSC "Lenenergo" approved by the Resolution of the Board of Directors of the Company on 14.04.2008, Minutes No.22 as of 18.04.2008;
• Regulations on the Standing Central procurement body of JSC "Lenenergo" approved by the Order No.152 of JSC "Lenenergo" as of 07.05.2008;
• Rules of Procedure of the Standing Central procurement body of JSC "Lenenergo" approved by the Order No.152 of JSC "Lenenergo" as of 07.05.2008.

In accordance with the specified documents, the Annual Overall Procurement Program (hereinafter referred to as AOPP) was developed. This program is based on the Address, Investment and Production Programs of the Company. AOPP of JSC "Lenenergo" for 2010 was approved by the Board of Directors of JSC "Lenenergo" on 14.05.2010, Minutes No.19. The adjusted AOPP taking into account the procurements of the 4^th quarter under the needs of the Company in 2010 was approved by the Board of Directors of JSC "Lenenergo" on 31.12.2010, Minutes No.12.

Procurement activity in JSC "Lenenergo" lies within the competence of the Logistics and Purchasing Department, which consists of the following divisions: Procurement Planning Division, Tendering Process Division, Supplies Approval and Control Division and Marketing Division.