VEB considering financing construction of new terminal in Khabarovsk Airport

In conjunction with the III Eastern Economic Forum in Vladivostok, Vnesheconombank, the Far East and Baikal Region Development Fund (FEDF, part of the VEB Group) and Khabarovsk Airport entered into a cooperation agreement with a view to delivering a project on the construction of a new passenger terminal for domestic flights in Khabarovsk Airport. A 26 thousand square metre terminal will have a capacity of 3 million passengers a year.

The document was signed by Chairman Sergey Gorkov, Director General Aleksey Checkunkov, and KOMAX Management Company President Konstantin Basyuk for Vnesheconombank, FEDF, and Khabarovsk Airport, respectively.

The total project cost is RUB4.4bn with Vnesheconombank and FEDF’s joint commitment standing at RUB3.5bn.

“Financing the infrastructure, particularly, the modernization of international hub airports, including the construction and refurbishment of terminals, is one of the key objectives of the Bank as a development institution. The engagement of VEB is to invoke interest in private investors and commercial banks for such projects. Funding of projects aimed at infrastructure debottlenecking produces significant development impact, in particular, by boosting production and creating new jobs. Furthermore, such projects bring about a multiplier effect through removing constraints, developing other industries and raising additional capital. We see a high operational potential in the Far Eastern Federal District. The construction of a modern passenger terminal and an extensive business and engineering infrastructure will significantly improve the social and economic environment and the living conditions in the region and help unlock Russia’s transit capacity,” pointed out Sergey Gorkov.

“Directly adjacent to the Asian dynamic outbound tourism market, the Russian Far East is one of the most magnificent tourist areas in the world. The Chinese tourists alone spend more than USD200 billion a year on holidays abroad. Upon the modernisation of the terminal and airdrome infrastructure, Khabarovsk Airport has every chance to boost passenger traffic,” said Alexey Checkunkov.

“The construction of a new terminal which will be advanced not only in terms of technological level, but also in terms of passenger service quality will significantly contribute to the development of transport infrastructure both in the Khabarovsk Territory and across Russia. We are confident that our partnership with the VEB Group will bolster our financial potential and facilitate expedient project delivery,” commented Konstantin Basyuk.

VEB is promoting regional development by financing infrastructure and manufacturing facilities in those Russian constituent entities that have their own development institutions, such as the Far East and Baikal Region Development Fund. In the last two years, fourteen projects totalling RUB213 billion were approved for financing, with the Fund’s commitment standing at RUB34 billion. The disbursement is in line with the agreed schedule, more than RUB15 billion have been already provided.

In the Russian Far East, Vnesheconombank is participating in eight projects for a total of more than RUB504 billion, five of which are in the Khabarovsk Territory. The Bank’s commitment exceeds RUB267billion. Another six investment projects in the Russian Far East are now under expert review at Vnesheconombank. Their total value exceeds RUB207 billion with Vnesheconombank’s commitment approximating RUB106 billion. These projects embrace airport, railway, and port infrastructure, as well as high-technology industries. When realized, such investments can give a powerful impetus towards economic development of the region.

Press Office