EDB begins to finance the Western High Speed Diameter project in St. Petersburg
The Bank has provided the first tranche exceeding RUR 3 billion.
Almaty, 19 April 2013. Today the group of banks, which includes Eurasian Development Bank (EDB), transferred the first tranche of the loan for the public-private partnership (PPP) project to construct and operate the Western High Speed Diameter (WHSD) toll road in St. Petersburg. EDB provided to the Northern Capital Highway consortium a loan of more than RUR 3 billion. The funds will be used to finance project expenses, primarily construction costs.
This has become possible after the conditions precedent set forth by the loan agreement dated 22 June 2012 had been fulfilled. The loan agreement stated that the lenders, which, in addition to EDB, include VTB Capital, Gazprombank, Vnesheconombank and the European Bank for Reconstruction and Development, would finance the construction of the WHSD central section to the tune of about RUR 60 billion, including EDB’s investment of RUR 10 billion.
The WHSD is
the world’s largest public-private partnership (PPP) project in the toll road
construction sector. The overall investment in the project is expected to reach
RUR 206 billion. The project is part of the Federal Target Programme for the
Development of the Transport System in Russia for
The WHSD a strategic investment project to develop transport infrastructure in St. Petersburg and form a strong transport network in and around it, which will make it a world—class transport hub. This Russia’s first urban toll road will have a length of 46 km and connect the northern and southern areas of St. Petersburg. It is expected to become one of the main solutions to the city’s traffic problems since it will help relieve traffic congestion in the central districts and provide a direct access from the downtown area to Pulkovo Airport and federal highways.
After the loan agreement had been signed, the WHSD project received a number of prestigious awards from international magazines: European PPP Transaction of the Year (Infrastructure Investor, 2012), European Toll Road Deal of the Year (Project Finance, 2012), European Road Deal of the Year (Project Finance International, 2012) and Best Urban Development Project in Europe (World Finance, 2013).
Additional Information
Eurasian Development Bank 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 exceeds US $1.5 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. Read more at https://www.eabr.org.