The agreement was signed on the sidelines of the Eastern Economic Forum by VEB.RF’s Deputy Chairman Artyom Dovlatov and the FEDF’s CEO Alexei Chekunkov. The document confirms the parties’ intention to explore the possibilities of jointly preparing and implementing projects for the purchase and subsequent leasing of Sakhalin railbuses.
“Sakhalin residents have recently been the first in Russia to use modern suburban railbuses. This is a good example of a synergy between development organisations, VEB.RF’s leasing mechanism with the FEDF’s financial participation. This work can be continued; the region also needs at least four railbuses,” VEB.RF’s Deputy Chairman Artyom Dovlatov commented.
“The development of the transport and logistics infrastructure of the island is high on our list of priorities. I am confident that the new project not only will benefit Sakhalin residents, but also will be another example of effective interaction within the VEB.RF Group,” the FEDF’s CEO Alexei Chekunkov said.
Natural Gas Processing Plant to Be Built in Nakhodka with Support from VEB.RF
During the Eastern Economic Forum, VEB.RF, VTB and Nakhodka Fertilizer Plant signed loan agreements to finance the construction investment project of Nakhodka Fertilizer Plant in Nakhodka, Primorye Territory.
The total design capacity of the project’s first phase is 1.8 million tonnes of methanol per year. Natural gas for production will be supplied from Sakhalin fields. The design and construction of the plant with financial support from VEB.RF and VTB will start in 2019, and Nakhodka Fertilizer Plant will work at full capacity in mid-2023.
The financing for the project is structured on the principles of the Project Financing Factory. In addition, a preferential loan of 7 billion roubles was given to the project initiator by the Far East Development Fund (part of the VEB.RF Group). The loan agreement is was signed on the sidelines of the Eastern Economic Forum. The loan will be used to finance the preparatory phase of the EPC contract.
When completed, the project will create over 1,500 highly professional jobs in the Primorye Territory. The plant will bring about a massive increase in tax revenue, improve the efficiency of using natural resources and strengthen Russia’s position in the Asia-Pacific markets.
VEB.RF and JBIC Launch Co-financing Programme for Regional Projects
VEB.RF and the Japan Bank for International Cooperation (JBIC) signed a loan agreement to finance the construction of the Sayuri year-round greenhouse facility in Yakutia.
The project will be funded under the agreement to provide co-financing for Far Eastern-based projects with Japanese export content. The document provides for collaboration between VEB.RF and JBIC to arrange financing for regional investment projects supported by Japanese Project Promotion Vehicle in the Far East (JPPV).
JPPV was established by the Far East and Baikal Region Development Fund (FEDF; part of the VEB.RF Group), Far East Investment and Export Agency and JBIC in 2018 to assist Japanese investors in finding local partners and provide information and administrative support for projects. More than 20 projects are supported by JPPV now. Work is under way under cooperation agreements with 16 Japanese companies.
JPPV helps Japanese partners to carry out the project to build a used car recycling plant in the Primorie Territory and a wood pellet plant in the Khabarovsk Territory.
As agreed, JPPV investment projects can receive a total of 15 billion Japanese yen from Japanese lenders for up to 10 years at the initial stage. Russian financing will come from both FEDF and VEB.RF.
“Several key projects are already under way with the participation of Japanese partners. For example, these are Arctic LNG (the project with Japanese involvement to build LNG infrastructure in the Far East) and Khabarovsk Airport development with the participation of a consortium of Japanese investors. We are also interested in encouraging cooperation in implementing projects aimed at creating a high-quality urban environment in large populated places in the Far East, primarily Vladivostok, Khabarovsk and Petropavlovsk-Kamchatsky,” said VEB.RF Chairman Igor Shuvalov.
“Preliminary decisions have already been taken to provide FEDF loans for the Sayuri greenhouse facility. The project is important for the quality of life in the region, delivering a year-round supply of fresh vegetables to local residents. Until recently, more than 80% of such produce had to be imported from abroad,” said FEDF CEO Alexei Chekunkov.
VEB.RF will provide financing for obtaining initial permits and design documents for the rare-earth metal and niobium extraction and processing project in the Tomtor rare-metal deposit, one of the largest in the world. VEB.RF, Vostok Engineering and Krasnokamensk Hydrometallurgical Plant entered into loan agreements during the Eastern Economic Forum.
The document was signed on behalf of VEB.RF by its First Deputy Chairman and member of the Management Board Nikolay Tsekhomsky and on behalf of Vostok Engineering and Krasnokamensk Hydrometallurgical Plant by Krasnokamensk Hydrometallurgical Plant’s CEO Alexander Zarubin.
“The loans of 1.5 billion roubles will be used to finance the expenses associated with obtaining initial permits, preparing design and estimate documents, and doing engineering work for equipment intended for the mining and processing facilities. We are confident that VEB.RF’s participation in this project will contribute to the creation of a competitive domestic rare-earth metal industry with a full process cycle, meeting the needs of the defence and non-defence industries, and will help to gain entry into foreign markets,” Nikolay Tsekhomsky said.
The Tomtor rare-earth metal deposit is located in the north-west of the Republic of Sakha (Yakutia) and is one of the largest in the world. The deposit has considerable reserves of niobium and rare-earth metals.
Vostok Engineering, a subsidiary of ThreeArc Mining, was founded to develop the Tomtor deposit and licenced to develop the Buranny section, whose reserves are ready for commercial development.
Ore processing will be done at a unique facility, Krasnokamensk Hydrometallurgical Plant (a subsidiary of ThreeArc Mining), in Krasnokamensk, Trans-Baikal Territory.
On 4 September, during the Eastern Economic Forum, Russian President Vladimir Putin held a teleconference to open a passenger terminal for domestic airlines at Khabarovsk International Airport.
“The new terminal with an area of more than 27,000 square metres will annually provide high-end services for 3 million passengers. The investments totalled 5 billion rubles, including 3.9 billion of borrowings from VEB.RF and the FEDF,” Chairman of the Board of Directors of Khabarovsk Airport Konstantin Basyuk said. “The terminal is ready to meet the growing demand for air transport in the Far East for and ensure safety and high-quality service for passengers and airlines. I recommend that the airport terminal should be put into operation now!”
“With financial support from VEB.RF and the Far East Development Fund, one of the largest airport projects in the Far East received funding, the Khabarovsk project. This is a very significant project. A project that will enable the development of domestic airlines, specifically in Far East, and inter-regional transport. There are plans to build an international terminal. We are potentially ready to consider the possibility of financing it. VEB.RF has an adequate competency in financing the construction and rehabilitation of airports,” VEB.RF’s First Deputy Chairman and member of the Management Board Nikolay Tsekhomsky said. From 2006 to 2019, VEB.RF has provided financing for nine projects for the construction and rehabilitation of airports with VEB.RF’s total commitment of more than 76 billion roubles. VEB.RF and commercial banks are currently considering several projects for the construction and modernisation of nine more regional airports, totalling about 44 billion roubles.The construction of the new passenger terminal for domestic airlines started in March 2018. The project was carried out in the Khabarovsk advanced development zone. The terminal was designed by German companies ASSMANN BERATEN + PLANEN and WP ARC. The general contractor was Turkey’s LimakMaraschStroy. The technical employer was DBC Consultants. The new terminal for domestic airlines is equipped with three jet bridges, 12 elevators for various purposes and seven escalators. The terminal is technologically compliant with modern international and domestic standards and meets the requirements for passengers with mobility impairment.