EDB signs a loan agreement for the project to construct the Western High-Speed Diameter in St. Petersburg

The Bank invests RUR 10 billion.

St. Petersburg, 22 June 2012. Eurasian Development Bank (EDB) invests RUR 10 billion in the public-private partnership (PPP) project to construct and operate the Western High-Speed Diameter road in St. Petersburg. A banking syndicate, which includes, in addition to EDB, VTB Capital, Gazprombank, Vnesheconombank and the European Bank for Reconstruction and Development signed today a loan agreement with Magistral Severnoi Stolitsy (MSS), which implements this project. In accordance with the agreement the lenders will provide MSS with funds to finance the construction of the second section of the Western High-Speed Diameter toll road for a total of approximately RUR 60 billion.

The Western High-Speed Diameter is the world’s largest PPP project in the sector of road construction. The total investment reaches RUR 260 billion, of which over RUR 120 billion will be invested in 2012—2015. The project is included in the Federal Targeted Programme for the Development of the Transport System in Russia (2010—2015).

The Western High-Speed Diameter is Russia’s first toll road in a city. This will be a 46-km road connecting the north and south of St. Petersburg. The construction of the Western High-Speed Diameter is one of the main solutions to St. Petersburg’s traffic problem. The project aims to unload the city centre and ensure smooth traffic from the city’s business centre to Pulkovo Airport and main roads.

«The agreement was signed during the St. Petersburg International Economic Forum. This emphases the significance and scale of this event,» Igor Finogenov, Chairman of the EDB Management Board, said. «The Western High-Speed Diameter is a strategic investment project of the city, aimed at the development of its transport infrastructure. In addition, we understand its significance as regards the formation in and around St. Petersburg of a comprehensive logistics network, which will make it a world—class transport hub. These are the circumstances the EDB Council took into account when making decision in May 2012 to increase the Bank’s financing of this project from RUR 3 billion to RUR 10 billion.»

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.