EDB to Provide $90 Million for Reconstruction of Pulkovo Airport
Thus the EDB joins the agreement on partnership between public and private entities which provides for the reconstruction, development and operation of Pulkovo Airport.
St. Petersburg, 28 April. The Eurasian Development Bank will provide $90 million for the project to create, reconstruct and operate the facilities of Pulkovo Airport based on partnership between public and private entities. A document to that effect was signed today by Gennady Zhuzhlev, Acting Director of the EDB’s Projects.
The recipient of this loan is the Consortium The Air Gateway of the Northern Capital which was awarded the agreement on partnership between public and private entities with the government of St. Petersburg. This agreement was made for 30 years, and provides for the reconstruction, development and operation of Pulkovo Airport.
The other parties to this project are European Bank of Reconstruction and Development, the International Financial Corporation, the Scandinavian Investment Bank, the Black Sea Bank of Trade and Development, Vneshekonombank, and a number of commercial banks. The total pull is €716 million.
For the EDB, this is the first experience of partnership between public and private entities in Russia, which its management views as a new development technology for the Russian economy.
“The Air Gateway of the Northern Capital is a strong partner that combines the international experience of Fraport and Copelouzos, firsthand knowledge of local business practices, large geographical coverage, and the financial expertise of the VTB”, said Igor Finogenov, Chairman of the EDB Executive Board, at the signing ceremony. “The implementation of this project will include co-financing with leading financial institutions, which will ensure the high level of mobilization of investment resources”.
The Pulkovo project belongs to the EDB’s priority area of financing, transport infrastructure. Bearing in mind the comprehensive, full-scale development envisaged by the project, the Bank expects that it will produce considerable socioeconomic effect on the Northwest region and the whole of Russia as well.
The Pulkovo project will also promote integration, as the airport serves regular flights connecting the capitals of the EDB’s member states. Increasing the throughput capacity of Pulkovo and making it a major regional and international transportation centre will in turn increase the flow of passengers between the member states.