VEB.RF and the State Corporation ROSATOM signed an agreement to provide guarantee support to urban infrastructure development projects under the Smart City program during the Saint Petersburg International Economic Forum. The document was signed on behalf of VEB.RF by its Deputy Chairman Daniil Algulyan and on behalf of ROSATOM by its Financial Director Ilia Rebrov.

The parties agreed to cooperate in the implementation of housing and utilities investment projects in cities and towns with ROSATOM’s presence. Priority will be given to the projects aimed at implementing cutting edge digital technologies in the management of urban business processes, including the development of IT solutions, data bases, and data centers.

VEB.RF is ready to provide guarantee support for implementation of investment projects under Smart City, Smart Water and Waste Treatment, Smart Heating programs. Bank guarantees will secure the obligations of a concession participant to carry out design, development or reconstruction activities stated in the concession agreement.

“One of the key areas of VEB.RF’s business is the financial support of urban infrastructure development projects implemented inter alia through a public-private partnership. VEB.RF uses different financial instruments to participate in such projects. One of the instruments is a concession guarantee. A concession guarantee is issued to secure a concession participant’s (private) obligations under the agreement to the concession provider (public). Together with ROSATOM, we have selected urban pilot projects, including projects in single-industry municipalities, which can benefit from this type of guarantee,” Daniil Algulyan said.

“ROSATOM aims at creating comfortable and convenient modern urban environment for the citizens, businesses and authorities in towns and cities with and without our presence. We are also seeking affordable financing mechanisms for these processes. One of the financing instruments for digitalization and IT projects is a concession agreement. The arrangement with VEB.RF will make it possible to transition to meaningful action in this area of business,” Ilya Rebrov commented.

Rusatom Infrastructure Solutions LLC, a subsidiary of ROSATOM in charge of the Smart City development, will design and implement urban environment digitalization projects.

ROSATOM has begun the roll-out of LEAN SMART CITY technologies in cities with its presence. LEAN SMART CITY is aimed at enhancement of municipal management efficiency, reduction of losses, time saving, resources economy, grass roots initiatives, and quality of life improvement. ROSATOM’s best practices combined with training of participants in LEAN SMART CITY principles and approaches grant the most efficient approach to cities and towns digital transformation, open opportunities for a step-by-step expansion of smart city services based on regional and urban strategic goals and needs.

A LEAN SMART CITY pilot project was implemented in Sarov (Nizhniy Novgorod Region). This project is a part of UN-Habitat sustainable development best practices.

The State Corporation ROSATOM brings together more than 300 enterprises and scientific organizations, including all civil Russian nuclear companies, nuclear weapon industry, research centers and the world’s only nuclear icebreaker fleet.

Rosatom is the largest power generation company in Russia, accounting for 18.7% of the country’s total generation of electricity.

ROSATOM is one of the global nuclear technology leaders.