The EDB intends to finance the creation of a railway research and production centre in Tula
St. Petersburg, 24 May 2018. The Eurasian Development Bank (EDB) intends to become a mandated arranger for an investment project to set up a railway research and production centre. The respective memorandum was signed by Andrey Krainiy, State Secretary at the EDB, Vyacheslav Fedorischev, Deputy Governor of Tula Region, and Alexander Silkin, Chairman of the Board of Directors at Tulazheldormash, at the St. Petersburg International Economic Forum.
The investment may reach US $1.4 billion. The funds will be used to design new railway equipment and technologies. The project is expected to create at least 60 highly skilled jobs in Tula Region. The region’s government intends to support the project through tax preferences and other incentives.
“We intend to invest in the development of innovative products in the domestic mechanical engineering sector and the advancement of production facilities. In particular, we are working on a multipurpose track maintenance unit to upgrade the process of maintenance and reduce related costs, as well as to improve the efficiency of railway infrastructure for clients. The enhancement of our production capacity will help us meet Russian Railways and foreign partners’ demand for track maintenance vehicles.
“The projects of such a scale have become possible exclusively with state support extended by the Government of Tula Region, as well as with the assistance of the EDB,” Alexander Silkin, Chairman of the Board of Directors at Tulazheldormash, said.
“This is a very interesting project to our Bank. The EDB aims to develop its member countries and support integration. Here we create new production facilities in Russia to manufacture track maintenance vehicles that are in demand in Eurasia,” Andrey Beliyaninov, Chairman of the EDB Management Board, commented.
Additional Information
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.
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