EDB to take part in financing Vodokanal of St. Petersburg’s investment programme
St. Petersburg, 1 June 2017. Eurasian Development Bank (EDB) intends to take part in financing Vodokanal of St. Petersburg’s investment programme. The letter of intent with respect to programme fulfilment and financing was signed by Dmitry Pankin, Chairman of the Management Board at EDB, and Evgeny Tselikov, General Director of Vodokanal of St. Petersburg, in the sidelines of the St. Petersburg International Economic Forum on 1 June 2017.
Vodokanal of St. Petersburg’s investment programme envisions infrastructure modernisation, reconstruction and development. EDB plans to arrange finance for the programme to the tune of up to RUB 60 billion, its own contribution to total up to RUB 15 billion.
The parties agreed that EDB will act as a mandated arranger and arrange a syndicated loan for Vodokanal of St. Petersburg to upgrade and enhance its water supply and sewerage systems. The programme, therefore, will be financed by the city of St. Petersburg, the company itself, EDB and other lenders, as well as from other sources.
“This project conforms to the Bank’s priorities. It is a national municipal infrastructure project creating conditions for St. Petersburg socio-economic development,” Dmitry Pankin says. “The investment programme will help to improve water supply and sewerage for significant numbers of people and businesses in St. Petersburg.”
“Vodokanal’s investment programme is a strategically important document intended to improve the quality of life in St. Petersburg and ensure environmental security in the Baltic Sea Region. Upgrade and reconstruction of industrial facilities require serious finance. Signing the agreement with Eurasian Development Bank, we are confident that our cooperation will be long-term and mutually beneficial,” Evgeny Tselikov emphasises.
For reference:
In 2016, Vodokanal of St. Petersburg launched a long-term investment programme for
The amount of investment into the construction, modernisation and reconstruction of Vodokanal’s centralised water supply facilities will be RUB 52.8, and into centralised sewerage (including combined and separate household sewage, as well as 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;
- ;connection fees — RUB 14.6 billion.
The shares of the main sources of finance will be as follows:
- St. Petersburg budget funds — 39%;
- company’s own funds and loans — 47%;
- connection fees — 14%.
The main areas for investment will be as follows:
- 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 energy efficiency of production facilities;
- measures to connect new users and construction sites.
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. 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 enterprise provides water supply and sewerage 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
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e-mail: pressa@eabr.org