INVESTING IN THE FUTURE 12 years ago, when our team started with investing At the very beginning, in 2007, the VTB Group’s in infrastructure projects in Russia, this market infrastructure team consisted of five persons. was just emerging - the first concessions were Now our team consists of more than 7,000 people, at the stage of discussion. In fact, there were and we are the largest infrastructure holding no projects with results. in Russia! We are capable of solving a full range of tasks of any complexity, including not only Having regard to the examples of other countries the fund raising, but also project management where the market of financing of infrastructure and development, construction and subsequent projects had long been developed with clear operation of facilities. and transparent criteria and rules, and to our experience of implementation of such projects, I am pleased that we have made a contribution we gradually began to transfer the foreign practice to the formation of the PPP market in Russia to our own unique product. and have attracted more than $17 billion of investments into the Russian infrastructure. We were pioneers in most of undertakings: In particular, our participation helped Russia to gain we developed the Russia’s first PPP project its own experience in the implementation of project in the airport industry, which was also the first concessions that are absolutely competitive country’s project implemented without state on the global stage. funding; implemented the world’s largest PPP project related to toll roads; implemented the first All the while, we have been pursuing a single goal – Russia’s project using loans and bonds placed to create long-term values for future generations. in the market; we were first to use syndicated loans, By investing in the future, we hope to further change derivatives; we launched the first regional project. people’s lives for the better. The list of achievements is not exhaustive – we have always applied an innovative approach. Oleg Pankratov,
Head of VTB Infrastructure Holding
1 ABOUT THE HOLDING
VTB Infrastructure Holding is the leader of the Russian market of infrastructure investments Our approach focused on large-scale strategic and commercially attractive projects as part of private- public partnerships and concession agreements. The holding is the largest Russian VTB Infrastructure Holding has a wide range of tools for the solution of the full range of tasks at all stages infrastructure investor. of infrastructure projects – from consulting in the project concept creation and tender organization to funds raising, construction and subsequent operation of facilities. To date, VTB Infrastructure Holding is a unique player in the Russian PPP/concession market with integrated financial and technical capabilities, an exclusive combination of the Russian and international expertise VTB Infrastructure Holding shows interest: and successful experience in the Russian and foreign markets.
greenfield brownfield
concessions, public-private partnerships, long-term current businesses and assets requiring significant new Since 2007, in total we have investment contracts investments with the prospective increase of production attracted more than: 17billion USD 6billion USD and financial indicators of Russian and foreign of loans and own funds investments of VTB Group To ensure the most effective concentration of technical expertise, specialized service structures were created within VTB Infrastructure Holding:
PUSK OSA VTB Development Holding’s team Project Management of Construction Highway Operator LLC (OSA) – VTB Development – implementation Contracts LLC (PUSK) – technical operation of transport infrastructure of comprehensive projects in the field The companies of VTB Infrastructure Holding employ over 7,000 persons. The Holding’s team has exceptional customer services, building facilities, operational consulting. of commercial and residential real professional expertise. Employees have gained experience at major foreign banks and financial companies, inspection, technical supervision, estate in the North-Western and other such as Merrill Lynch, Credit Suisse, JPMorgan, ABN AMRO, Royal Bank of Canada, KPMG, Société Générale, technical consulting. regions of Russia. Ernst&Young.
In total, the VTB Infrastructure Holding’s team secured and organized financing of various projects in the amount of over $100 billion.
Our strategic priorities:
• Maintaining the leading role in the market of infrastructure investments of the Russian Federation
• Implementation of projects on an arm’s length basis, making them attractive to potential customers
• Expansion of the portfolio with large, innovative and financially attractive projects
• Attraction of financial and strategic co-investors to our projects, creation of consortia of highly reputed members
• Active approach to our portfolio asset management using the experience accumulated from other projects, focus on maximizing the market capitalization of both individual investments and the entire portfolio
2 PROJECTS
The current portfolio of VTB Infrastructure Holding includes the largest projects not only by Russian but also by European standards. The diverse portfolio covers a lot of industries: toll roads with the total length of over 200 km, airports serving about 20 million passengers per year, grain terminals with the capacity of more than 10 million tonnes per year, and other flagship facilities in Russia.
4 WESTERN HIGH-SPEED DIAMETER (WHSD)
WHSD is a unique intercity toll expressway and the world’s largest PPP project related to toll roads.
In 2011, VTB Group proceeded to the implementation of the unique project of construction of the Central Section of the Western High- Speed Diameter (WHSD), a toll multi-lane highway in St. Petersburg.
It was constructed in restrained urban conditions, having solved the key infrastructure tasks of the city and determined the development of St. Petersburg as a global transport hub. The highway enables 20-30-minute passage through the megalopolis with 5 million inhabitants.
220billion roubles total investments in the project
380thousand passages are recorded every day through the WHSD; about 90 million vehicles per year pass the highway
7 M-11 "MOSCOW - ST. PETERSBURG"
This is the first Russia’s project implemented using loans and bonds placed in the market.
In 2014, VTB Group jointly with the French company Vinci started the implementation of the project of construction and operation of stages 7 and 8 of the M-11 highway (Moscow - St. Petersburg) as part of the public-private partnership.
M-11 is a completely new road designed and constructed round about existing settlements. No highways of this length 40thousand vehicles have been constructed from scratch in Russia yet the daily capacity of the new highway
The M-11 highway has a strategic impact on the development of the country’s transport infrastructure. The highway not only provides high-speed motor service between the two capitals, but jointly billion roubles with the Central Ring Road and the Moscow-Nizhny Novgorod-Kazan 80 highway it becomes the part of the North Europe-Western China the amount of the project investments transportation corridor.
LOGISTICS CENTRES
VTB Group and Russian Post JSC are implementing through the joint venture National Logistic Technologies JSC (NLT) the project of creation of 38 logistics centres with the area of over 400 thousand m² across the country.
This project is an essential step towards the creation of the up-to-date logistics infrastructure for electronic commerce in the country. The infrastructure is created to serve the needs of both Russian and foreign participants in the distance trading market.
The launch of centres will ensure The project includes 6 first-level the delivery of goods to the population centres, 11 second-level centres the next day after ordering goods and 21 third-level centres online in all major cities of the country and every other day in regional centres
First- and second-level logistics centres will also offer a full range of online commerce fulfilment operations, including warehousing billion roubles 20 of goods, acceptance and processing of orders, packaging parties’ 3-year investments and delivery of goods.
It was the first Russia’s PPP project in the airport industry.
In 2010, VTB Group was involved in the large-scale project The first stage of reconstruction and development of Pulkovo Airport of construction, reconstruction and operation of Pulkovo Airport was implemented in 2010-2014. A new passenger terminal was in St. Petersburg. As part of the consortium of international investors, constructed, the building of the former Pulkovo-1 Air Terminal was it concluded a 30-year agreement of public-private partnership billion euros reconstructed and expanded, large-scale upgrading of the airfield million passengers with the city. VTB Group participated in the project as the largest co- 1,2 infrastructure was carried out. 18 the amount of the project financing the current Pulkovo’s traffic volume investor and an exclusive financial consultant. The first country’s project implemented without state funding.
10 11 KAMA BRIDGE GRAIN BUSINESS
PROJECT VTB Infrastructure Holding sees a great potential for the development of grain exports from Russia. The grain business strategy stipulates the synergy of assets in the field The construction of toll of transport export logistics and trade. bridge crossings over the Kama and Bui rivers near As a part of this strategy, VTB Group was at different but also the operation of the terminal complex Kambarka (Udmurt Republic) times the member of Novorossiysk Grain Terminal in compliance with the latest environmental, process is the first Russia’s regional LLC (NGT), Novorossiysk Plant of Bread Products, and fire safety requirements. PPP project in the field the United Grain Company, the Mirogroup Resource of road construction. Trader, and the Rustranscom Railway Carrier. The corresponding concession In particular, NGT is one of the largest deep-sea agreement was signed between terminals in Russia focusing on grain transshipment. the Udmurt Republic and Regional VTB Group is planning its further development Investment Company LLC and ramp-up. The use of up-to-date process million tonnes per year (RIC) in 2012. VTB Group was equipment, the latest automation systems 6 one of the financial investors transhipment volumes of NGT and the innovative dust suppression system allows and lenders of the project. to ensure not only high-speed grain shipment at NGT The project is highly significant for the region to ensure the development of transport and economic relations of the Central, Volga and Ural federal districts and the year- round transport accessibility of settlements in the Kambarsky district of the Udmurt Republic.
Since 2017, Regional Investment Company LLC has been carrying out toll operation of the facility.
15 km 14 billion roubles the total length of the highway, including road accesses the cost of the project, with almost 70% from extra-budgetary and four bridge structures sources of financing
12 GELENDZHIK AIRPORT
The terminal will be built using the latest technologies.
Since 2019, VTB Group has been implementing the project of construction of the new modern airport complex in the city of Gelendzhik. This project will improve the resort’s transport accessibility and increase the quality thousand passengers per year billion roubles of services provided to airport passengers and airlines. In addition to the new Gelendzhik airport terminal, 630 4 the capacity of the new airport complex. Its commissioning the amount of total investments from the current it is planned to build additional airport infrastructure, including office and engineering buildings, car parking is planned for late 2021. The area of the new terminal will project shareholders lots, parking lots for taxis and intercity buses. exceed 15 thousand m² CONSTRUCTION OF THE BRIDGE OVER THE PUR RIVER
In 2019, the concessionaire became the winner in the Best Private Initiative nomination of the Rosinfra national infrastructure award.
VTB Group is one of the participants of Regional Infrastructure Company LLC, the concessionaire of the project of construction and operation billion roubles of the bridge crossing over the Pur River between 10 Korotchaevo and Urenga settlements in the Yamal- the total project cost funded by private investments in full Nenets Autonomous District.
The bridge crossing will connect the eastern part of the district rich in natural resources with the main highways of Yamal located to the west of the river. After commissioning, the new bridge will provide year-round, 24- hour service between km 2,5 the two river banks. the bridge crossing length, including 1 km of engineering structures
CONSTRUCTION OF ROAD FACILITIES IN UFA
“Eastern Exit” is the largest infrastructure project in the Republic of Bashkortostan.
In 2017, VTB Group became the party infrastructure network. It will allow to release to the concession agreement of financing, the existing motorways and provide a more construction and operation of the toll road convenient and faster access of residents in the Republic of Bashkortostan, a new exit from to the federal highway M-5 Ural. Ufa to the federal highway M-5 Ural (Eastern Exit).
This transportation corridor connects the federal highways M7 and M5. According to the concession agreement, it is planned to complete the construction of the tunnel, the bridge crossing and the highway, as well as create the toll collection and traffic control system. VTB Group co-finances the construction billion roubles of the facility. 40 the total project cost; the concession term is 25 years The project of construction of the new exit from Ufa is essential for the development of both the city and the nearby settlements and the regional
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