EDB extends a loan of up to RUB 5.9 billion for Vodokanal of St. Petersburg’s investment project
St. Petersburg, 25 January 2018. The Eurasian Development Bank (EDB) and Vodokanal of St. Petersburg signed a loan agreement to finance reconstruction, development and modernisation of water supply, sewage and sludge utilisation facilities in St. Petersburg. The document was executed by Andrey Beliyaninov, Chair of the Management Board at the EDB, and Evgeny Tselikov, General Director of Vodokanal of St. Petersburg. The loan amount is up to RUB 5.9 billion for ten years.
In June 2017, the EDB and Vodokanal of St. Petersburg signed a letter of intent concerning the joint fulfilment and financing of Vodokanal’s investment programme. Under the agreement, the EDB will arrange finance to the tune of up to RUB 60 billion, including its own funds of up to RUB 15 billion as approved by the Bank’s Council in August 2017.
The project envisions reconstruction, development and modernisation of water supply, sewage and sludge utilisation facilities managed by Vodokanal that are included in its investment programme.
In particular, it covers reconstruction and development of the Northern Wastewater Treatment Plant (Phase 2), and reconstruction and modernisation of a sludge treatment plant, including the building of two incineration lines at the Central Wastewater Treatment Plant and the design of an alternate collector to the Northern Tunnel Collector.
The project is expected to utilise the most efficient solutions during reconstruction, construction and operation of Vodokanal’s treatment facilities to ensure the provision of environmentally-friendly and reliable services. It is intended to significantly improve the environmental situation in St. Petersburg and adjacent water areas and arrange reliable supplies of drinking water to a significant part of the population and businesses in the city.
“This project corresponds to the Bank’s mission and strategy and contributes to the achievement of sustainable economic growth,” Andrey Beliyaninov, Chair of the Management Board at the EDB, comments. “The advancement of utilities and related infrastructure plays a great deal in promoting St. Petersburg’s social and economic development.”
For reference:
In 2016, Vodokanal of St. Petersburg launched its first long-term investment programme for 2016-2020. In accordance with the amended programme approved by the Tariff Committee's Resolution 300-R dated 30 December 2016, investment will total RUB 99.7 billion over five years.
Investment in the construction, modernisation and reconstruction of Vodokanal's centralised water supply facilities will be RUB 52.8 billion, and in centralised sewage (including combined and separate household sewage and separate surface runoff facilities) RUB 46.9 billion.
The sources of finance to be used over the five years of the programme are as follows:
- St. Petersburg's budget funds – RUB 38.4 billion;
- company’s own funds and loans – RUB 46.7 billion; and
- connection fees – RUB 14.6 billion.
The shares of the primary sources of finance will be as follows:
- St. Petersburg budget funds – 39%;
- company’s own funds and loans – 47%; and
- connection fees – 14%.
The main areas of investment will include:
- measures to ensure guaranteed supplies of safe drinking water;
- measures to reduce environmental impact;
- measures to ensure reliable, uninterrupted water supply and sewage services, and improve the energy efficiency of production facilities; and
- measures to connect new users and construction sites.
The 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. The 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.
Read more at https://eabr.org/
Vodokanal of St. Petersburg is a state-owned utilities enterprise, a leader of Russia's public water supply sector. The company provides water supply and sewage services to over 5 million residents and tens of thousands of businesses in St. Petersburg. Vodokanal received two quality awards from the Government of Russia in 2006 and 2015.
Read more at www.vodokanal.spb.ru
EDB Media Centre:
+7 (727) 244 40 44, ext. 6147 (Almaty)
e-mail: pressa@eabr.org