St Petersburg Government in co-operation with VTB Capital holds the roadshow in London for the Yanino PPP waste processing plant
The Design Build Finance Operate Transfer project for a 350 thousand tonne waste processing plant is structured within private-public partnership (PPP) mechanism. The approximate project’s capital expenditure is EUR200 mln.
The tender will be announced in November this year, while the signing of the 30 years long PPP Agreement with the winning bidder is planned by the end of 2010.
Financial, legal and technical advisors of the City of St Petersburg are VTB Capital, DLA Piper and Arup respectively.
Yuri Soloviev, President and Global CEO at VTB Capital, noted: “Currently, VTB Capital is one of the leaders in terms of the volume of infrastructure projects being realized in Russia. This particular project is interesting for both sides. It will enable the City of St Petersburg to modernize waste processing infrastructure and to improve environmental situation. It also allows to generate stable cash flows despite economic conditions.”
Oleg Pankratov, Co-Head of Global Banking at VTB Capital, said: “The project has several advantages from the potential investors’ point of view. Firstly, it has predictable cash flow (therefore, the project will enable to attract bank loans). Secondly, the project has a serious political support. Thirdly, it is the first infrastructure project focused on waste processing in St Petersburg – several international industrial and financial organizations have expressed interest in the project.”
Construction of Yanino waste processing plant will become the fifth big infrastructure project in St Petersburg involving PPP mechanism after Pulkovo airport modernization, building of Orlovsky Tunnel, Western High Speed Diameter and NadEx light railway.
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