GC NPS, JSC and VEB.RF agreed to work together on PPP projects with a total value of RUB 1 trillion
The parties signed a memorandum of cooperation on the portfolio of promising public-private partnership projects of GC NPS, JSC during the St. Petersburg International Economic Forum.
Alexey Krapivin, General Director of GC NPS, JSC Group of Companies: "VEB.RF has been our supporting financial partner since the formation of NPS Group of Companies. Therefore, it is absolutely logical that at the new stage we agreed to strengthen interaction and continue joint substantive work within the mandate of VEB.RF as a development institution in key areas, primarily in road, port and airport infrastructure".
Nikolay Tsekhomsky, First Deputy Chairman of VEB.RF: " GC NPS, JSC is our long-standing partner in a number of transportation infrastructure projects. The volume of investments in the portfolio of specific promising infrastructure projects, on which we are currently working, amounts to about 1 trillion rubles for the period up to 2030. Work is currently underway to determine approaches to their structuring. For a number of projects at an earlier stage of implementation, we have agreed to jointly assess the feasibility of their implementation on the principles of public-private partnership and prepare relevant justifications. VEB.RF will also consider the possibility of participating in their financing, including with the involvement of state support measures. The amount of financing by VEB.RF will be determined based on the development of an optimal financing structure in partnership with commercial banks and development institutions. The projects include the construction of bridge crossings, highways, city bypasses and railroad infrastructure".
To organize project financing, VEB.RF will consider the following instruments: loans in the form of senior and junior debt, participation of equity funds; the Project Finance Factory mechanism; preferential financing in the Far East and the Arctic; financing under the Far Eastern Concession mechanism; provision of bank guarantees and sureties; investments in bonds of special project companies; financing of leasing companies; and financing of project financing.
To organize project financing, VEB.RF will consider the following instruments: loans in the form of senior and junior debt, participation of equity capital funds; the Project Finance Factory mechanism; preferential financing in the Far East and the Arctic; financing under the Far Eastern Concession mechanism; provision of bank guarantees and sureties; investments in bonds of special project companies; financing of leasing transactions for the purchase of equipment and transport for infrastructure project implementation
In its turn, the GC NPS, JSC will prepare proposals on mechanisms for implementing infrastructure projects on the basis of public-private partnership, including both the mechanisms of concessions, PPP agreements and long-term investment agreements, which are widely used in the market, and the mechanism of EPCF contracts, which is new to the market.
Nikolay Tsekhomsky, First Deputy Chairman of VEB.RF: " GC NPS, JSC is our long-standing partner in a number of transportation infrastructure projects. The volume of investments in the portfolio of specific promising infrastructure projects, on which we are currently working, amounts to about 1 trillion rubles for the period up to 2030. Work is currently underway to determine approaches to their structuring. For a number of projects at an earlier stage of implementation, we have agreed to jointly assess the feasibility of their implementation on the principles of public-private partnership and prepare relevant justifications. VEB.RF will also consider the possibility of participating in their financing, including with the involvement of state support measures. The amount of financing by VEB.RF will be determined based on the development of an optimal financing structure in partnership with commercial banks and development institutions. The projects include the construction of bridge crossings, highways, city bypasses and railroad infrastructure".
To organize project financing, VEB.RF will consider the following instruments: loans in the form of senior and junior debt, participation of equity funds; the Project Finance Factory mechanism; preferential financing in the Far East and the Arctic; financing under the Far Eastern Concession mechanism; provision of bank guarantees and sureties; investments in bonds of special project companies; financing of leasing companies; and financing of project financing.
To organize project financing, VEB.RF will consider the following instruments: loans in the form of senior and junior debt, participation of equity capital funds; the Project Finance Factory mechanism; preferential financing in the Far East and the Arctic; financing under the Far Eastern Concession mechanism; provision of bank guarantees and sureties; investments in bonds of special project companies; financing of leasing transactions for the purchase of equipment and transport for infrastructure project implementation
In its turn, the GC NPS, JSC will prepare proposals on mechanisms for implementing infrastructure projects on the basis of public-private partnership, including both the mechanisms of concessions, PPP agreements and long-term investment agreements, which are widely used in the market, and the mechanism of EPCF contracts, which is new to the market.
