VTB Capital has received the Infrastructure Investor Award in “European PPP Transaction of the Year” category for its successful implementation of Russia's first urban toll road, the Western High Speed Diameter (WHSD) construction project. VTB Capital is a co-investor (sponsor), lender and financial adviser to the WHSD.
The WHSD is the world's largest public-private partnership (PPP) toll road project. The highway stretches 46 km and consists of three sections connecting St. Petersburg’s northern, central and southern areas. It will reduce traffic congestion on urban highways and roads by redirecting traffic to the federal highways, as well as improving connections with the downtown area and Pulkovo Airport. VTB Group is a majority shareholder of the LLC Northern Capital Highway. On August 9, 2011, it was named the preferred bidder in the tender for the right to build the central part and further operation of the WHSD.
On December 20, 2012 a signing ceremony was held in Moscow to mark the financial closing of the WHSD project. According to the loan agreement that was signed on June 22, 2012 in St. Petersburg, investments in the project will amount to RUB 206 billion (about USD6.4 billion), including more than RUB 120 billion between 2012-2015 financed under the Public Private Partnership Agreement.
Oleg Pankratov, Head of Infrastructure Capital & Project Finance at VTB Capital, and Chairman of the Board of Northern Capital Gateway consortium, noted: "We are very pleased that the international professional community has appreciated the scale and innovation structure of WHSD. This project managed by VTB Capital has a strategic importance for the development of Russia's road infrastructure. We will continue to actively participate in the development of infrastructure projects in Russia with growing interest in them by the global investment community."
VTB Capital was awarded Project Finance magazine’s Deals of the Year award for the implementation of the Western High Speed Diameter Project. VTB Capital has also been awarded the "European Road Toll Deal of the Year" by Project Finance magazine. Previously the WHSD was named the "Best Urban Development Project in Europe" at the World Finance awards and received the Thomson Reuters PFI award for “Road Deal of the Year in Europe”.
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