Almaty, 22 June 2011. This June, the Eurasian Development Bank (EDB) celebrates its fifth anniversary. Over the past period — since its foundation in 2006 — the Bank has become a recognised international financial development institution focused on regional integration. The EDB has become an effective financial instrument for long-term investment programmes and projects aimed at the economic development of the Bank’s member states and strengthening of the trade and economic cooperation between them.
“During the first stage, it was important to develop the new organisation,” said Igor Finogenov, Chairman of the EDB Executive Board. “Today, we can say with certainty that our Bank has established itself as the regional development bank. The objectives of the EDB’s new strategy for
2011-2013, the growth strategy, include the achievement of not only integration, but also social and economic effects of projects. We plan to enhance our activities both geographically and through the diversification of the financial instruments we propose.”
“Certainly, the Bank’s activities in 2011-2013 will also be aimed to help its member states overcome the consequences of global financial crisis and create conditions conducive to sustainable economic growth,” emphasised Igor Finogenov. “Five years in the market is an important milestone to us and to our clients, partners, and communities as a whole. Therefore, I would like to thank — on behalf of the Eurasian Development Bank — everyone who helped us during the establishment and development phase, took part in our projects, trusted us, and believed in our success. I am convinced that our friendship and cooperation will develop and solidify for the benefit of people.”
“I would also like to thank my colleagues, the EDB’s employees — those who started with the Bank and those who joined us later. The EDB’s success is a direct result of your professional and personal contribution,” said Igor Finogenov.
Today, over 40 significant EDB’s projects are being implemented and over 30 are being considered. As at 1 April 2011, the EDB’s investment portfolio exceeded US $2.5 billion. Total investment in the member states’ economies is approaching US $3 billion. The Bank’s experts estimate that at the end of 2010 the EDB’s accumulated investment portfolio, which included current and closed projects, had potential to generate mutual trade flows between the EDB member states worth US $818 million a year. The increase in the mutual investments backed by the Bank’s projects exceeded US $865 million.
The projects initiated by the EDB during the previous year include large infrastructure projects in power engineering, transportation, agricultural, metallurgy and processing sectors.
In particular, the Bank joined a project to construct the third power generating unit with a capacity of 500 MW at Ekibastuzskaya GRES-2.
The Bank also began financing the construction of the Polotsk hydropower plant in Belarus.
In 2010, the EDB joined a PPP infrastructure project to construct, reconstruct, develop and operate Pulkovo Airport in St. Petersburg. In addition, the EDB signed a loan agreement to finance a project to launch production and arrange the repairs of freight cars at the Osipovichsky Wagon Works in Belarus.
The Bank is also co-financing the development of Russia’s first industrial complex to produce polycrystalline silicon — the main material for solar energy and microelectronics. In November, the Bank signed a US $100 million credit facility agreement with Usolie- Sibirsky Silicon (member of NITOL).
In 2010, the EDB began financing Kazakhstan’s first full-cycle tin production. The Bank participated in pre-export financing of two agricultural projects in Kazakhstan: it opened a US $35 million credit facility for the Kazexportastyk Holding for purchasing oil-bearing crops from Kazakh farms and signed a US $50 million loan agreement with Korporatsiya APK-Invest for purchasing grain harvested in 2010-2012 for export.
In December 2010, the EDB signed an agreement to participate in the Macquarie Renaissance Infrastructure Fund (MRIF). The MRIF funds total US $630 million and the EDB investment US $100 million. The MRIF is intended to implement infrastructure projects in the CIS, including the projects that are priorities for the countries in the region.
In addition, in 2010 the EDB actively fulfilled its functions of the EurAsEC Anti-Crisis Fund (ACF) manager: Tajikistan was provided a US $70 million stabilisation loan in 2010 and Belarus began to receive a US $3 billion financial credit from the ACF this June.
There are many efforts to support pre-investment and innovation research at the interstate, country and industry levels, which are aimed at deepening integration processes in the Eurasian space, strengthening market infrastructure, and ensuring sustainable economic growth in the Bank’s member states.
