On signing a Memorandum of understanding between Vnesheconombank, the International Bank for Reconstruction and Development (IBRD) and the International Finance Corporation (IFC)
Today, on June 17, 2008, state corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ signed a Memorandum of Understanding with the International Bank for Reconstruction and Development (IBRD) and the International Finance Corporation (IFC), the World Bank Group members.
On behalf of Vnesheconombank the Memorandum was signed by V. Dmitriev, Chairman of Vnesheconombank. IBRD and IFC were represented by Robert B. Zellik, President of the World Bank.
The Memorandum expresses the parties’ intention to foster cooperation in areas of mutual interest. The cooperation areas embrace issues related to Vnesheconombank’s institutional development as a state bank for development, financing infrastructure facilities, as well as developing public-private partnership (PPP) mechanisms.
The Document defines that it is through joint financing of infrastructure projects that Vnesheconombank could diversify risks, raise additional funds for financing, identify new areas of activities benefiting from the expertise offered by IBRD and IFC in project elaboration and evaluation. The forms of joint financing would include parallel investments by Vnesheconombank and IFC, risks spreading mechanisms, as well as creating regional funds to finance municipal projects.
The Memorandum also envisages IBRD’s assistance to Vnesheconombank in setting up the PPP structure, reinforcing HR potential in the PPP area, elaborating methodologies and recommendations related to projects selection and evaluation, as well as rendering due and prompt assistance in implementing the PPP principles.
Within the cooperation framework, it is envisaged that IBRD, IFC and Vnesheconombank would seek to devise joint programs in the area of environment protection, energy efficiency and sustainable financing.
Vnesheconombank intends to consider opportunities of cooperation with IBRD that would help identify projects related to enhancing energy efficiency, as well as other projects aimed at reducing green house emissions and complying with the requirements of mechanisms known as Joint Implementation (JI) of the Kyoto Protocol.
IFC and Vnesheconombank will jointly elaborate and launch an Internet portal intended for the Russian small- and medium size enterprises (SMEs) drawing on the international expertise of IFC in the respective area. The portal will provide the Russian SMEs with the information on sources of funding, as well as with practical recommendations for enhancing their activities. IBRD will offer recommendations on deepening and broadening financial intermediation through wholesale mechanisms that would ensure SMEs’ access to sources of funding at the regional level.
Origin: Press Office of Vnesheconombank
Contact person; Svetlana Nikitina
Phone: +7 (495) 608-46-93, Fax: +7 (495) 975-21-34
E-mail: press@veb.ru
Vnesheconombank, Kaluga Region Government and Kaluga Region Development Corporation Enter into Agreement
Today on June 10, State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)’, the Kaluga Region Government and the Kaluga Region Development Corporation entered into an Agreement of Intent on Vnesheconombank’s participation in the charter capital of the Kaluga Region Development Corporation to finance industrial parks infrastructure development project.
The Agreement was signed by Vnesheconombank Deputy Chairman Anatoly Ballo, Kaluga Region Governor Anatoly Artamonov and Kaluga Region Development Corporation Board Director Maxim Akimov.
Under the Agreement Vnesheconombank’s participation share in the Corporation’s charter capital can amount to 25% of the Corporation’s charter capital. The Bank’s participation in the Corporation’s charter capital is needed to allow Vnesheconombank to exercise corporate control over the Corporation’s activity in the process of implementing the project “Industrial Parks Infrastructure Development: Forming a Cluster for Manufacturing Automobiles and Auto Components”.
This Agreement was made to build on the Agreement on Cooperation signed earlier between Vnesheconombank and the Kaluga Region Government.
The total value of the project “Industrial Parks Infrastructure Development in the Kaluga Region: Forming a Cluster for Manufacturing Automobiles and Auto Components” amounts to more than 6.6 billion rubles with the financing period of 10 years. Production facilities of such strategic investors as Volkswagen, Volvo Track, Peugeot-Citroen and Mitsubishi as well as industrial sites of auto components manufacturers will be located on the territory of industrial parks. The project is to be carried out within Public Private Partnership scheme. One ruble in state investment invested in the infrastructure of parks is expected to raise 15 rubles in private investment. At the current stage of cooperation, Vnesheconombank is considering the possibility of allocating funds in the total amount of up to 5 billion rubles for implementing the project.
Origin: Press Office of Vnesheconombank
Contact person; Svetlana Nikitina
Phone: +7 (495) 608-46-93, Fax: +7 (495) 975-21-34
E-mail: press@veb.ru