On Signing Agreement between Vnesheconombank and the UN Development Programme
Today, on December 30, 2009, State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and United Nations Development Programme (UNDP) signed a Project Document and Cost Sharing Agreement under Joint Project ‘Development of Public-Private Partnerships in Russia’.
On behalf of Vnesheconombank, Anatoly Ballo, member of the Board - Deputy Chairman, signed the Documents. Frode Mauring, Resident Representative in the Russian Federation, represented UNDP.
The Project is focused on enhancing Russia’s potential for public-private partnership (PPP). To this end, the Project provides for improvement of the federal and regional legislative framework, introduction of innovative managerial and financial instruments in the PPP area, developing the potential of the existing and newly established PPP centres, as well as for implementation of pilot (demonstration) projects in the Russian regions and CIS-countries with subsequent dissemination of the experience. The Project is designed to ensure quality and dynamic development of human potential in the Russian regions.
The Project is to be implemented with the participation of federal legislative and executive bodies, specialized agencies, UN programmes, regional administrations and municipalities, private operators, regional banks, environmental organizations, as well as other interested parties. Vnesheconombank’s PPP Centre will act as Project Coordinator.
Within the framework of the Project, it is envisaged to establish PPP Expert Council to include representatives of federal executive and legislative bodies, business community, development institutions and international organizations. The key objectives of the Council will comprise arranging public debates to explore possible managerial and technological solutions, making recommendations and proposals to amend federal and regional legislative and regulatory framework, as well as rendering expert assistance in planning and implementing pilot projects.
Pilot projects embrace the following areas: water supply and wastewater disposal, treatment of wastes from consumption and production, energy efficiency, transport infrastructure development, construction and maintenance of social infrastructure facilities, housing construction and a mortgage program.
Vnesheconombank and UNDP will jointly select regions and projects. In doing so, they will be guided by regional and local authorities’ preparedness to implement strategies for economic development adopting a PPP approach, i.e. to introduce necessary amendments to a legal and regulatory framework and revise the existing or adopt new PPP-based long-term target programmes. Equally important is their willingness to ensure access for private operators to regional markets as a policy response to the goal of competition promotion.
Upon the Parties’ agreement, Alexander Bazhenov, Vnesheconombank’s PPP Centre Director, is appointed as National Director of the Project.
Vnesheconombank’s PPP Centre was established in 2008 to support and develop infrastructural projects of national, regional and municipal dimension applying PPP instruments. By now, Vnesheconombank has concluded a number of agreements with constituent entities of the Russian Federation aimed at rendering support and arranging financing for PPP projects. Vnesheconombank participates in project delivery in the Rostov, Sverdlovsk and Kaluga regions, as well as other constituent entities of the Russian Federation.
United Nations Development Programme (UNDP) is the United Nations major agency for development. UNDP advocates transformations and provides access to specialist knowledge, expertise and resources in order to improve the living standards of people. UNDP operates in 166 countries assisting them in identifying their own solutions to problems of global and national development. Presently, due to changes in Russia’s international status and its increasingly important role as a global donor, UNDP gives its major priority in Russia to addressing regional development needs.
Origin: Press Office of Vnesheconombank
Contact person: Ekaterina Karasina
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34
E-mail: press@veb.ru
Vnesheconombank Starts Financing the Urengoy Electric Power Station Construction Project
Vnesheconombank has provided the first tranche of about 1 billion rubles to finance the Urengoy Electric Power Station Construction Project (the city of Novyi Urengoy) subject to the credit agreement signed earlier with OJSC INTER RAO EES under which Vnesheconombank is to extend a bridge-credit worth 8 billion rubles.
The Urengoy Electric Power Station Construction Project is being implemented under the General Scheme for the Deployment of Electric Energy Facilities till 2020. The Scheme was approved by the Russian Government’s Order. The project is designed to secure the Tyumen energy system’s stability, supply power to the region’s oil and gas producing companies and create favorable conditions to maintain and increase hydrocarbons production levels. The project is being implemented with the use of the latest steam and gas technologies enhancing its energy efficiency.
Vnesheconombank’s participation in financing this project has been approved by VEB’s Supervisory Board.
Under Vnesheconombank’s Memorandum on Financial Policies, one of the Bank’s most important lines of investment activity is its participation in projects aimed at improving the energy infrastructure and boosting the Russian economy’s energy efficiency.
Origin: Press Office of Vnesheconombank
Contact person: Ekaterina Karasina
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34
E-mail: press@veb.ru