VTB Bank announced on February 14, 2014 that it is financing a public-private partnership (PPP) project to build an oncology centre in Orsk, Orenburg Region (Russia).
VTB has signed the financing agreement with the Orenburg regional government and ListPromStroy, the project's general contractor.
VTB will issue a seven year, 963 million ruble (US$27.3 million) loan to ListPromStroy.
In addition, the bank has issued the contractor a performance bond in favour of the customer the Orenburg Region State Publicly Funded Agency for Housing, Utilities and Social Construction for 133.5 million rubles (US$3.8 million) over a 2.5 year period.
Chaba Zentai, VTB Bank Management Board member, stated:
PPP is an effective form of financial cooperation between state and business that can address regional infrastructure problems in a targeted way. I am confident that the project will drastically improve the healthcare system and people's quality of life in the Orenburg Region.
Orenburg, a transcontinental city and an administrative center of Orenburg Oblast (Russia), is located on the Ural River. The city is 1,478 kilometers southeast of Moscow and very close to the border withKazakhstan. It has an approximate population of 550 000 people.