During the St. Petersburg International Economic Forum, state-owned company Russian Highways, InfraVEB, and the Primorie Territory administration entered into a tripartite agreement on cooperation in the structuring and implementation of the Vladivostok Ring Road investment project.
The document was signed by Russian Highways’ Chairman of the Board Vyacheslav Petushenko, InfraVEB’s CEO Yuriy Korsun, and Governor of Primorie Territory Oleg Kozhemyako.
The parties agreed to cooperate in the structuring and implementation of the project to construct a motorway in Vladivostok, as well as in delivering other road infrastructure projects.
“State-owned company Russian Highways is ready to assist in delivering infrastructure projects and introducing innovative technology. I hope that our joint project will allow motorists to make it from one Vladivostok’s district to another much faster than now. It will also improve the environment and transport accessibility across the agglomeration,” Russian Highways’ Chairman of the Board Vyacheslav Petushenko said.
“Transport infrastructure development is on VEB.RF’s priority list. The project in Vladivostok will be implemented drawing on state-of-the-art innovative technology. It is expected to structure the project on the public-private partnership principles. InfraVEB is ready to help raise private capital to finance the project,” Yuriy Korsun said.
“This year, we are going to invite bids for price substantiation, make preliminary calculations as to the application of funds for the construction of this road, and explore PPP options. It is exactly this agreement that enables both VEB.RF, Russian Highways and other companies to size up all these options and then come up with their financing proposals. In 2019 - first half of 2020, it is scheduled to provide price substantiation and then to proceed to the engineering and construction proper,” Governor of Primorie Territory Oleg Kozhemyako said.
VB.RF and Sberbank to Finance Novaport Holding’s Network of Regional Airports in Six Russian Regions
During the St. Petersburg International Economic Forum, VEB.RF and its partner bank signed a term sheet for financing a project to upgrade regional airports comprising Novaport Group in six Russian cities. Brand new terminals will be built in Murmansk, Astrakhan, Vladikavkaz, Tomsk, Kemerovo, and Ulan-Ude. The project financing will be structured in accordance with the principles of the Project Financing Factory in the form of a syndicate of Russian banks using special-purpose tranches and a subsidised interest rate. Sberbank will be a partner bank in the syndicate.
The document was signed on behalf of VEB.RF by its First Deputy Chairman and Member of the Board Nikolay Tsekhomskiy, on behalf of Sberbank by Deputy Chairman of Executive Board Anatoly Popov and on behalf of NOVAPORT HOLDING by Chairman of the Board of Directors Roman Trotsenko.
A 12-year syndicated loan for the amount of 6.6 billion roubles will be used for the construction of new airport terminals. In compliance with its terms and conditions, VEB.RF and Sberbank are to extend 2.65 billion roubles and 3.85 billion roubles in financing.
The construction is scheduled to be completed in 2023. The regional centres will obtain six modern airport terminals with almost 33,000 square metres of additional space for some 10 million extra passengers on a 12-year horizon. Furthermore, the year 2030 will see about 1,300 new jobs created with benefits exceeding costs by 4.4 billion roubles.
Novaport Holding’s Chairman of the Board of Directors Roman Trotsenko said:
“The project of integrated development of airport infrastructure will set the stage for new destinations and new air carriers, and, ultimately, deliver quality services to passengers and significantly increase passenger traffic. I am confident that investments in this project, in which we have injected 5.1 billion of our own funds will pave the way for even more ambitious joint projects in future. We estimate that investment in further development of our airports in the next five years will exceed 50-70 billion roubles.”
“The renovation of the regional airports’ infrastructure and expanding the network of interregional scheduled passenger air routes to 50% of the total domestic scheduled air routes are the objectives specified in the 2024 Integrated Plan for Upgrading and Expanding Trunk Infrastructure. As a development institution, VEB.RF views the tasks assigned by the May decree as its priority. Currently, VEB.RF Group is contemplating its participation in the financing of ten transport infrastructure investment projects totalling over 1.5 trillion roubles and included in the Integrated Plan, and more than ten projects totalling over 1 trillion roubles and considered for inclusion in the Integrated Plan,” Nikolay Tsekhomskiy noted.