VEB.RF Introduces Crisis-Fighting Measures to Support Regional PPP Projects
VEB.RF and the National PPP Development Center (part of the VEB.RF Group) have come up with a rescue plan to support the regions by providing fee-free expert advice on the preparation and launch of PPP projects. There are currently 40 pilot projects in the pipeline. If they prove successful, they will be extended to the other Russian regions. As of the beginning of May 2020, about 400 regional PPP projects were in jeopardy: their implementation can be postponed indefinitely. The rescue programme is primarily designed to substantially reduce the number of troubled PPPs and help the regions to avoid suspending their infrastructural initiatives.
“The national projects and social commitments undertaken by the regions and municipalities have not changed in relation to building new roads and community facilities, modernising public utility services and developing the urban environment and IT infrastructure. Public-private partnerships, including concession agreements, in such a situation can provide an optimum solution to avoid postponing the launch of infrastructural projects,” VEB.RF Chairman Igor Shuvalov said in a statement to the heads of constituent entities of the Russian Federation.
Experts from the VEB.RF Group and the National PPP Development Center are ready to conduct a strategic audit of infrastructural plans (government programmes, targeted investment programmes); make recommendations on whether it is practicable to use PPP mechanisms for their implementation; analyse the current situation in a region through the use of PPP mechanisms; provide access to remote training in the application of concession agreements and PPP agreements; conduct instant due diligence for projects; and offer assistance in setting up projects (preparing a road map, searching for potential partners and beneficiaries, and providing tailored support).
All work will be organised on a platform designed to support infrastructural projects, ROSINFRA (rosinfra.ru). When the relevant authorities connect to ROSINFRA and become its regular users, they will be able to promptly build up a portfolio of high-potential PPPs. Access to the largest database of projects and off-the-shelf solutions, along with online advice from leading market experts, will greatly reduce project costs and enhance the quality of project preparation. The service of promoting regional project initiatives is designed to improve and accelerate the search for investors and partners.
ROSINFRA already contains about 4,000 ongoing PPP projects and 700 project initiatives; 60 experts are involved in giving advice; major investors and financiers are among its regular users. Additionally, the projects posted on ROSINFRA and meeting VEB.RF’s requirements and mandate can seek funding from VEB.RF.
VEB.RF Starts to Finance Project to Supply Five Main-line Electric Freight Locomotives to Uzbekistan
VEB.RF has provided financing for the project to supply five 3ES5K main-line electric freight locomotives manufactured by Transmashholding, Russia, for O’zbekiston Temir Yo’llari (Uzbekistan Railways).
VEB.RF and the National Bank of the Republic of Uzbekistan for Foreign Economic Activity (NBU) entered into a loan agreement in April 2020 to finance the supply project.
“Uzbekistan is one of VEB.RF’s leading partners in export projects, and the NBU is a reliable partner of VEB.RF. As part of efforts to build up trade and economic cooperation between Russia and Uzbekistan, our financial institutions have signed four loan agreements to date, totalling about 188 million euros. A project is well under way to supply underground carriages for the Tashkent Metro, along with projects to modernise power facilities. VEB.RF now has a whole range of projects in the pipeline to finance the supply of Russian high-tech products to the Republic of Uzbekistan,” VEB.RF’s Deputy Chairman Daniil Algulyan said.
VEB.RF is involved with the International Cooperation and Export national project and provides support for projects to promote Russian high-technology exports.
The NBU is the largest bank in Uzbekistan, accounting for about 24% of the country’s total bank assets. Currently, the bank has capital of 1,380 million US dollars and the same credit rating of BB- from Standard & Poor’s as the sovereign rating of Uzbekistan.