Main Page // Bank for development // Support for Top-Priority Industries // Infrastructural Projects and PPP

Given the fact that, historically, Vnesheconombank has been a primary vehicle of the state economic policy, it presently views enhanced participation in major investment projects, aimed at developing infrastructure and high-technology industries in the real sector of Russia’s economy, as a priority strategic objective for the coming years.

In late December 2005, Vnesheconombank signed an agreement with Russia’s Transportation Ministry on general principles of financing investment projects. Under this agreement, the Bank will act as the Ministry’s strategic partner. The agreement provides for conducting expert’s examination of investment projects, preparing schemes to finance investment and infrastructure projects in the transportation sector carried out with the use of Public-Private Partnership. To facilitate the performance of this agreement, Vnesheconombank provided the Ministry with expert’s opinions concerning the projects to construct high-speed motorway Moscow-Saint Petersburg and modernize M1 highway of the Moscow ring automobile road (MKAD).

In late April 2006, Vnesheconombank signed in Tomsk an agreement with Deutsche Bank AG on cooperation in supporting joint projects within Public-Private Partnership. The agreement envisages rendering assistance in selecting the best-suited schemes to finance investment projects. The two sides would also explore the possibilities of financing economically feasible projects. The agreement with German partners provides for exploiting the full potential of the Russian Law on Concessions.

In July 2006, Vnesheconombank signed an agreement with OJSC BALTENERGO on general principles of financing the project aimed at laying high-voltage cable along the bottom of the Gulf of Finland. Under the agreement the Bank is to provide consulting services on all economic and financial aspects of the projects, as well as represent OJSC BALTENERGO’s interests in the course of negotiations with foreign financial institutions on the issues related to financing the project. The project aims to increase the export of Russia’s electric power and improve the reliability of Russia’s and the European Union’s energy systems.

Vnesheconombank has a keen interest in PPP because, traditionally, the Bank has been operating in the sectors where the interests of the state and private business are closely aligned. It actively cooperates with state and private companies in implementing major investment projects. The cooperation is instrumental for the Russian regions where most industrial products are manufactured.

Comprehesive Development of the Lower Angara Region

The project costs

41,4 billion  rubles

Pay-back period

14 years

This May, Vnesheconombank signed an agreement with the Krasnoyarsk Region Development Corporation to raise USD 800 million - 1 billion worth of investment to fund the construction of a pulp and paper mill in the Boguchan region of the Krasnoyarsk territory. Furthermore, the Russian Federation Investment Fund is designed to finance infrastructure facilities, needed to build and operate this pulp and paper mill.

The construction of the mill is part of a more extensive program of developing the Nizhneye Priangarie Area. Taking into account the total amount of projected investment (exceeding USD 13 billion), this program is likely to become the largest project within Public-Private Partnership in Russia in the foreseeable future. Besides, a comprehensive program of the Nizhneye Priangarie Area development provides for implementing a number of infrastructure projects with the use of the RF Investments Fund’s money in the amount of more than RUB 34 billion. 

Social and Environmental Benefits:

• raising the population employment rate and creating new jobs;
• employing environment-friendly technologies;
• more efficient timber management;
• increasing wood resources utilization rate and reducing wood losses, which annually amount to 70-80 thousand cubic meters.

Economic Benefits:

• maintaining high economic growth rates in the region:
• increasing personal incomes and living standards;
• import substitution including strategically important products;
• expanding manufacturing production facilities contributing to more efficient utilization of natural resources.

The Water Supply and Water Drainage Facilities Construction and Reconstruction Comprehensive Program of Rostov-on-Don and the Southwest of the Rostov Region

The project costs

22,14 billion rubles

Including of the Russian Investment Fund’s money

5,13 billion rubles

Under the agreement on cooperation in building and expanding the utility infrastructure signed with OJSC “Eurasian” Vnesheconombank participates in carrying out the investment project “The Water Supply and Water Drainage Facilities Construction and Reconstruction Comprehensive Program of Rostov-on-Don and the Southwest of the Rostov Region ‘, with the project being implemented within public-private partnership with the use of the Russian Investment Fund’s money. Vnesheconombank has been the shareholder of OJSC “Eurasian” since 2006, with its stake being 19.9%.

The Project’s Main Objectives are to:

• liquidate the shortage of drinking water in the city of Rostov-on-Don and settlements in the Southeast of the Rostov region;
• improve the quality of drinking water bringing it in full sync with Russian standard requiremens;
• provide water supply and water drainage infrastructure for building new housing in the amount of 12.6 million m² (for 781 thousand residents);
• create 1170 new jobs;
• extend the region’s investment appeal;
• ensure sanitary, hygiene and environmental safety of the city territory and the river Don in its downstream and the Azov and Black seas basins;
• lay the groundwork for promoting tourism and building recreation facilities.

Economic benefits:

• additional tax revenuse to the federal budget – 13.280 million rubles;
• additional revenues to regional budgets – 12.500 million rubles;
• 1.7% contribution to the Rostov region’s domestic regional product during five years of the project implementation period.

Western Speed Diameter

The project costs

82,86 billion rubles

Vnesheconombank acts as an expert consultant in the project to build a toll high-speed highway “The Western Speed Diameter” (WSM). The WSM is a strategically important project as it is instrumental in facilitating the development of Saint Petersburg as a major world transport hub connecting the sea port with 13 federal and territorial roads from Saint Petersburg in the direction of Finland, Estonia, Ukraine, Belarus and Russia’s neighboring regions. The project’s implementation would, to a great extent, optimize logistics upon delivering cargoes to and from the port and improve the operation of the city’s transport, provide transport links between southern, western and northern Saint Petersburg’s layout zones circumventing the historical center.

The WSD is a city high-speed highway with transport interchanges at different levels, for the most part with 8 lanes equipped with modern computer-aided traffic management and communications systems.

14 transport various level interchanges incorporated in the WSD are scheduled to be built. Furthermore, unique bridge facilities with uderbridge dimensions over the navigation channel of 55 and 35 meters are to be built in Russia for the first time.

Sheremetjevo-3 Air Terminal

The credit line

$211 million

For a period of

13 years

Within the long-term financing of the project to build the Air Terminal Complex Sheremetjevo-3 Vnesheconombank entered into a credit agreement with OJSC Terminal providing for opening a credit line worth 211 million US dollars for a period of 13 years. At the beginning of 2008 air passengers will have a new modern air terminal hub-complex offering European-class services with good connections between international and domestic flights, modern parking infrastructure and well-advanced road system which will allow to provide above ground automobile and railway transport links with the city.

• 90% of passengers are to be serviced with the use of passenger telescopic gangways;
• maximum connection time- 45 minutes;
• the first section of the high-speed highway Moscow- Moscow – Saint Petersburg is to be opened near the Sheremetjevo airport;
• throughput capacity is 12 million passengers a yea;
• by late 2007 the construction of the  railway connecting the center of Moscow and the Sheremetjevo airport will be completed;

Reconstruction and Expansion of the Passenger Terminal at the Khrabrovo Airport (the city of Kaliningrad)

The credit line

$34 million

For a period of

7.5 years

Vnesheconombank is involved in long-term financing for a period of up to 7.4 years of the project to reconstruct and expand the passenger terminal at the Khrabrovo airport (the city of Kaliningrad). The new terminal of the Khrabrovo airport forms the basis of the project carried out by OJSC KD avia and aimed at building an air transport hub between Europe and Russia. The construction is planned to be completed in late 2008. The passenger terminal will be characterized by a high level of comfort and modern technologies to service passengers. Kaliningrad’s convenient geographical location will allow, above all, to make fast connection between international and domestic flights, minimize waiting time in the transit zone and make it possible to check in for a whole route at the departure point.

• the terminal’s throughput capacity – 5 million passengers a years;
• more than 200 hundred options of transit routes;

Custody Serviñes Custody Depart- ment is in the highest- reliability category of AAA.

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