EDB enhances its portfolio of transport infrastructure projects

Almaty, 30 May 2012. The role of international and national development banks in the creation and modernisation of transport infrastructure is growing. Gennady Zhuzhlev, Deputy Chairman of Eurasian Development Bank’s (EDB) Managing Board, said this today at Adam Smith Conferences’ 8th Annual Forum Transport Infrastructure in Russia in St. Petersburg.

According to Mr Zhuzhlev, this growth is explained by the anti-crisis nature of projects in the area of transport and transport infrastructure and anti-cyclical project activities of development banks. «States are interested in increasing financing for infrastructure projects during economic recession to stimulate economies,» Gennady Zhuzhlev explained. «As a rule, development banks increase their financing of economies during recession.» This applies in the first place to large investment projects with a period of financing of up to 15 and more years that are implemented with the use of project financing and public-private partnership schemes.

The participation of development banks in these projects involves a number of requirements. These include economic assessment of a project, a significant contribution to the project by its initiator, the legal and financial structuring of the project, time- and cost-balanced sources of targeted financing, and a multi-level monitoring and control system.

Gennady Zhuzhlev said that at present transport and transport infrastructure projects account for almost a fourth (24.9%) of EDB’s investment portfolio. In Russia, the Bank’s projects include the construction of the Tikhvin Freight Car Building Plant, the creation of Sukhoi SuperJet-100, the reconstruction of Pulkovo Airport, the creation of railroad infrastructure for the development of the Elga coal deposit in Yakutia, the construction of a network of CNG filling stations in the framework of Gazprom’s programme, and the development of a market in freight transportation through the lease of freight cars by carriers. In Belarus, the Bank took part in the construction of the Osipovichi Railcar Building Plant. The Bank’s investments in these projects exceed US $780 million.

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.