Including export projects
RT-Business Development (the State Corporation Rostec
investment holding company) and the Federal Project Finance Center (Vnesheconombank
Group) have signed a cooperation agreement on joint participation in
infrastructure projects in Russia and abroad. The document was signed August 18
by RT-Business Development General Director Andrei Korobov and FPFC General
Director Alexander Bazhenov.
The cooperation agreement will boost development of projects offering the
highest promise in terms of growth potential, primarily high-tech projects in
the field of social infrastructure.
The FPFC will use its own funds to finance the initial project stages. Under the
partnership, the FPFC will also put together cost effective and replicable
projects, including all the requisite technical, economic, and legal research
and creation of proposals in the form of a private initiative.
Pursuant to its direct investment development strategy, the signing of the
agreement will allow RT-Business Development to join the infrastructure projects
during their early stages to provide support for their commercial application
and enlarge the company's infrastructure assets.
RT-Business Development General Director Andrey Korobov stated that "the signing
of the agreement constitutes an important step for the company in the field of
infrastructure project financing and opens up new areas for us to collaborate
with the revamped Vnesheconombank Group. The substantial growth opportunities
offered by the infrastructure projects, combined with the strong potential of
new financial instruments in the hands of our partners in the FPFC, will propel
the development of existing projects under today's challenging economic
climate".
Under the terms of the partnership agreement, RT-Business Development will
liaise with government authorities and authorized government institutions
concerned with implementation of the appropriate projects with a view to
creating favorable economic, legal, and tax regimes. Specifically, it will
assist in obtaining authorizations and approvals and resolving land and property
issues. The parties will work together to seek out investors and long-term
financing. Among the first projects to be reviewed will be those in which
services and products offered by State Corporation Rostec companies and holding
companies can constitute a significant cost component at the investment stage of
project implementation.
The Federal Project Finance Center (FPFC) is a wholly owned subsidiary of the
state corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank).
The FPFC's role in the Vnesheconombank Group is to provide financial and expert
support for preparing regional and urban development projects whose
implementation involves non-government funded investment, including investment
under government-private partnership agreements.
RT-Business Development is a wholly owned subsidiary of the State Corporation
Rostec that specializes in professional asset management and financial and
industrial project implementation. Under its three-year strategy and initial
operating program, the company will move over to a direct investment fund model
of operation by 2017-2018. Its strategic objectives are to increase the
capitalization of the assets it manages and to implement large-scale financial
and industrial projects in various economic sectors. The company's principal
goal during its current stage of development is to maximize the investment
attractiveness of its existing projects and partially monetize them in order to
seek out new investment partners and reap the financial rewards of its
operations.