Moscow, 11 November 2016. Eurasian Development Bank (EDB), Avtodor Invest and the Public Private Partnership Development Centre (PPP Development Centre) signed a memorandum of cooperation. The document was executed on 11 November 2016 in Moscow, at EDB’s 11th International Conference on Eurasian Economic Integration.
The signatories were Konstantin Limitovsky, Deputy Chairman of the Management Board at EDB, Alexander Kondrashov, General Director of Avtodor Invest, and Pavel Seleznyov, Chairman of the Board at the PPP Development Centre.
The memorandum envisions that the parties will take joint action to ensure and facilitate access to finance for the initiators of promising projects. To this end, the parties will determine, using their experience and competencies, the key financial and lending mechanisms to support infrastructure projects and will exchange information about promising projects, devise respective project finance models, and consider the provision of technical assistance in their preparation.
“Our cooperation with Avtodor Invest will promote the development of transport infrastructure and, as a result, will give a new impetus to trade between the Bank’s member countries. This will help us in our task to promote integration further,” Konstantin Limitovsky, Deputy Chairman of the Management Board at EDB, said. “We should point out that many infrastructure projects today run as public-private partnerships. Our cooperation with the PPP Development Centre will help to enhance the Bank’s opportunities to take part in such projects.”
“I am convinced that our trilateral partnership will have the necessary synergy effect and encourage the further advancement of infrastructure at the federal and regional level. The competencies and experience of each of the parties will help to develop an efficient mechanism for analysing project feasibility and rates of return and their structuring as public-private partnerships, as well as to attract finance for such projects,” Alexander Kondrashov, General Director of Avtodor Invest, added.
“The PPP Development Centre’s know-how in implementing PPP mechanisms throughout Russia and the experience of Avtodor Invest, which is a state-owned company and structures projects for a public contracting authority, allow us to launch pilot PPP projects in various sectors (transport, utilities, social development) in the very near future. With Eurasian Development Bank’s specifics in mind, we will focus, in the first place, on projects with an integration component,” Pavel Seleznyov, Chairman of the Board at the PPP Development Centre, commented.
Additional Information:
Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
The PPP Development Centre is an association set up to consolidate the efforts of market participants aimed at developing public infrastructure with PPP mechanisms. At present, the PPP Development Centre is Russia’s leading centre of expertise in PPP and operates the PPP Development Rating of Regions. Over seven years of its operation, the Centre has entered into over 40 agreements with Russian companies, fulfilled 26 research projects at the federal and regional level, and conducted over 100 educational programmes for some 2,500 government officials and representatives of the private sector.
Avtodor Invest is an associate company of Russian Highways established in 2013 to support concession and PPP projects in the road sector and other infrastructure developments.
Avtodor Invest boasts Russia’s largest team for PPP projects, comprising legal, financial and marketing experts, which develops and manages PPP projects, including finance and exit scenarios.
Avtodor Invest’s team is experienced in structuring transactions in the road sector and other industries, including seaports, the power sector, railroads, airports, shipbuilding, agriculture, and the food sector.
The company’s partners are Russia’s and world’s largest investors.
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