Andrey Kostin signs loan agreement to build St Petersburg toll road
22 June 2012
LLC Northern Capital Highway, an infrastructure consortium including VTB Group as majority shareholder and OJSC Gazprombank, today signed a loan agreement with a syndicate of banks including VTB Capital Plc, Gazprombank, the State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank), the European Bank for Reconstruction and Development (EBRD) and the Eurasian Development Bank (EDB).
Under the agreement, the banks will make funds totalling about RUB 60 billion available to Northern Capital Highway to build the central section of the Western High Speed Diameter toll road in St Petersburg (WHSD). Total investment in the project, which will also be partly financed from the Russian federal and St Petersburg city budgets, is forecast at RUB 206 billion (about USD 6.4 billion), including more than RUB 120 billion over the period 2012-2015.
Russia's first urban toll road, the WHSD, is a 46 km highway with three sections connecting the north, centre and south of St. Petersburg. The WHSD is designed to reduce traffic pressure on the city’s roads by redirecting traffic flows, to divert trucks from districts near the Sea Port onto federal highways, and to improve connections between the city centre and Pulkovo airport. The project will use advanced technological solutions in transport infrastructure and IT systems to manage traffic, and will offer e-payment using stickers on vehicle windscreens.
I am pleased that VTB will be actively involved in building one of Russia’s most modern motorways».
Andrey Kostin, VTB Bank President and Chairman of the Management Board, said: “The Western High-Speed Diameter is Russia’s largest private-public partnership project. I am pleased that VTB will be actively involved in constructing and operating one of Russia’s most modern motorways”.
Northern Capital Highway in August 2011 won a tender organised by the St Petersburg city government to construct and operate the WHSD.
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