VTB Capital has received two World Finance public private partnership (PPP) awards for 'Best Project Sponsor in Europe', and 'Best Debt Funder in Europe'.
Both awards recognise the 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 scheme was also proclaimed the Best Urban Development Project in Europe at the awards.
World Finance’s prestigious annual honors evaluate a large number of projects across a variety of bank sector roles in Europe, the Middle East & Africa, Asia Pacific, and the Americas.
Last December, the WHSD project also received the Thomson Reuters PFI award for Road Deal of the Year in Europe.
Oleg Pankratov, Head of Infrastructure Capital & Project Finance at VTB Capital, and Chairman of the Board of Northern Capital Gateway consortium, noted: 'The WHSD is a unique and strategically important infrastructure project for the city of St. Petersburg and for Russia. These internationally respected awards reflect the bank’s ability to deliver highly complex PFI and PPP projects and are an important acknowledgment from the international investment community'.
The WHSD is the world's largest public-private partnership (PPP) toll road project. The WHSD highway will stretch for 46 km and consists of three sections connecting St. Petersburg’s northern, central and southern areas, which will reduce traffic congestion on urban highways and roads by redirecting traffic flows and will redirect cargo traffic to the federal highways, as well as improve connections with the downtown area and Pulkovo airport.
VTB Group is a majority shareholder of the LLC Northern Capital Highway. On 9 August, 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 the loan agreement that was signed on June 22, 2012 in St. Petersburg, investments in the project will amount to RUB 206 bn (about USD6.4 bn), including more than RUB 120 bn between 2012-2015 financed under the Public Private Partnership Agreement (PPPA).
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