Vnesheconombank is extending till 1 March 2018 the selection of candidates for regional manager positions at the request of the Russian constituent entities whose candidates have missed the deadline for applying. The candidates who make it through a multi-stage selection process will be given the status of official representatives of Vnesheconombank in their regions and will search for and select projects eligible for financing by the Bank for Development. The Bank expects to select maximum three managers in each constituent entity. In the fourth round, VEB will select representatives in those regions where no managers have been chosen yet or which still have not got a pool of three managers.
Vnesheconombank is taking a new approach to its regional operations aiming to create a wide project funnel and search for projects directly in the Russian regions, which calls for regional expertise. The previous three rounds of the multi-stage selection process resulted in 79 managers from 50 Russian constituent entities joining the VEB team.
The new business model is already paying off. In four months, the regional managers have come up with 140 potential project initiatives. A designated on-line platform has received over thirty applications for financing, of which eleven have been successfully screened by VEB for compliance with key requirements. These are projects in the power generating industry, machine-tool building and production of novel materials in the Vladimir Region, engine manufacturing in the Voronezh Region, pharmaceuticals industry and healthcare infrastructure in Moscow, as well as various projects in the Leningrad Region, Perm District, and other regions. First project implementation agreements are expected to be entered into with the initiators at the St. Petersburg International Economic Forum 2018.
“Since 2017, Vnesheconombank has been using a new approach to regional development. It was not in all constituent entities of the Russian Federation that we succeeded in selecting suitable candidates last year. However, we do not intend to relax our requirements and will proceed with the selection of candidates for the position of our representatives this year. As for the current results achieved by our new regional partners in the search for potential projects for VEB, I can say that we are on the right track,” Aleksey Ivanchenko, Vnesheconombank’s Deputy Chairman and Member of the Management Board, said. “We have also added a new initiative to our regional agenda: elaboration and customization of standard projects in priority industries for specific constituent entities of the Russian Federation. For the regions, it is, primarily, an opportunity to have quality projects with a tried-and-true business model and minimum risk, a reliable project packaging, financing and monitoring scheme, and efficient disposition of funds. The Bank, on its part, is prepared to offer proved standards and tools of project management, partnership relations with industry leaders, and a comprehensive product proposal for various project types.”
At the Russian Investment Forum 2018, Vnesheconombank and the Agency for Strategic Initiatives signed Memorandums on Interaction with the heads of nineteen constituent entities of the Russian Federation. The Memorandums lay a principally new foundation for the interaction between VEB and regions. The key features of such interaction include wider partnership in the investment area, in particular, assistance to regions in the elaboration and packaging of major regional projects that come into the investment focus of Vnesheconombank, and improvement of the efficiency of regional government support for projects. Furthermore, it includes cooperation with regions in the introduction of best practices and implementation of regional projects based on the Bank’s standard solutions. The parties will also cooperate in developing the VEB regional manager network project as part of the Bank’s new model for regional operations.
The regional manager status is not only an opportunity to become an official link between a constituent entity of the Russian Federation and VEB to promote major projects but rather a new level of interaction with regional top officials and business leaders, expansion of contacts at the federal level, and an opportunity to participate in expert forums held, in particular, by Vnesheconombank. Regional managers are not on the staff of Vnesheconombank. They operate in compliance with cooperation agreements and are remunerated on a ‘success fee’ basis for successfully delivered projects.
To take part in the fourth round of the selection process, the candidates must accomplish a number of tasks posted on the ASI LEADER-ID platform. The finalists of the electronic selection stage will be interviewed. Eligible candidates include representatives of local business, non-commercial organisations and development institutions, as well as applicants with a background in government service, investment and finance.