Eurasian Development Bank to allocate $90mln for reconstruction of Pulkovo airport

April 29, 2010 - 10:05 AMT

PanARMENIAN.Net - The Eurasian Development Bank (EDB) will allocate $90mln to finance a project on establishment, reconstruction and operation of units within Pulkovo airport. Relevant document was signed today by Acting Managing Director on EDB Project Activity Gennady Zhuzhlev, the press service of EDB reported.

The funds will be allocated to Air Gates of Northern Capital, LLC, consortium, the winner of a tender on the right to sign an agreement on public-private partnership with the government of Saint Petersburg. The agreement is signed for 30 years and foresees reconstruction, development and operation of Pulkovo airport.

Besides EBD, the following banks provided financing to the project: EBRD, International Finance Corporation, Nordic Investment Bank, Black Sea Trade and Development Bank, Vnesheconombank and a range of commercial banks. The total sum of the financing by these banks amounts to 716mln euros.

“This is EDB’s first participation in a project on public-private partnership in Russia. And the bank’s leadership views it as a new technology for the Russian economy’s development,” the report reads.

The project on Pulkovo airport’s reconstruction is among priority fields of financing for EDB. The project is aimed at facilitating the development of integration processes: the airport provides services to regular flights connecting the capitals of all EDB member states.

Eurasian Development Bank

The EDB was founded on January 12, 2006 in Astana, Kazakhstan following the signing of the Agreement on Establishment of the Bank, which was then ratified by the Republic of Kazakhstan on April 12, 2006 and by the Russian Federation on June 3, 2006. The Bank officially commenced operations on June 16, 2006. The Bank enjoys the status of an international organization and is subject to international law. The Bank was established with a charter capital of US$1.5 billion, of which US$1 billion is contributed by Russia and US$500 million by Kazakhstan. According to the founding documents, any country or international organization can apply to become a member of the EDB. The Bank's mission is to facilitate the development of market economies, economic growth and the expansion of trade and other economic ties in its member states by carrying out investment activities. The Bank strives to become a consolidating element within the financial infrastructure and a catalyst for the expansion of integration processes in the territory of its member states.

Pulkovo Airport

Pulkovo Airport is the fourth largest airport in Russia. 74 foreign, 26 CIS and 120 Russian air companies implement flights to Pulkovo.

The new terminal will be able to service up to 25mln passengers annually by 2025. Pulkovo-1 passenger terminal, providing services to internal flights, is also planned to be upgraded under the project.