Sergey Gorkov takes part in official opening of Western High-Speed Diameter Central Seсtion in St.-Petersburg
On 2 December 2016, the Chairman of Vnesheconombank Sergey Gorkov took part in the opening ceremony of the Central Seсtion of the Western High-Speed Diameter highway (WHSD) in St.-Petersburg. The opening ceremony was attended by Russian President Vladimir Putin.
Having provided RUB 25 billion worth of funds for a term of more than twelve years, i.e. amounting to approx. 50% of the syndicated ruble loan raised in 2012 to deliver the project, VEB has become one of the senior lenders for the construction of the WHSD Central Seсtion.
WHSD is one of the major public-private partnership (PPP) projects in road construction financed by Vnesheconombank. According to Sergey Gorkov, co-financing of the WHSD project is something the Bank is quite proud of.
The WHSD Central Seсtion project is being implemented in compliance with a 30-year PPP agreement signed with the St.-Petersburg Municipal Government and its 100% subsidiary ZSD Joint-Stock Company. The contractor in charge of this landmark transport project is Northern Capital Highway Consortium.
The highway is of paramount importance for the capital of the North: it will allow for diverting the bulk of traffic away from the historic centre of the city. On a nationwide scale, the highway, as a part of the North-South international transport corridor, significantly contributes to the mobility of Russia's Northwestern Federal District population.
The WHSD main route length is 46.6km, with a total length including exit roads and junctions exceeding 70km. The project provides for fifteen road junctions and 4-8 traffic lanes. The highway would help reduce traffic in the historic centre, ring road and road network of St.-Petersburg, and allow for motorists to traverse the city in less than twenty minutes.
In compliance with the conditions of Eurobond issue and by order of the Russian Ministry of Finance, State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” transferred USD 71,250,000.00 worth of funds to the National Security Depository.
The funds are remitted in payment of interest on a USD 3bn bond issue made by the Government of the Russian Federation in 2016 and maturing in 2026.