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VEB to Pay for Hi-Risk Feasibilty Studies
Vneshekonombank is creating a special department to finance feasibility studies of major investment projects under a proposal found in the draft “Main Clauses of the VEB Strategy for the Period 2008-2012,” which has already been approved by the government. That measure will attract private funds to large infrastructure projects that investors refuse to participate in at the risky first (planning) stages that make up 10-15 percent of the cost of a project.
VEB deputy chairman Sergey Vasilyev commented for Kommersant that “Theoretically those funds can be allotted from the state budget but, if there is an opportunity to attract extra-budgetary financing, it should be done. Frankly, we are counting on aid from international financial development institutions such as the World Bank and EBRD,”
The strategy plan is one of the basic documents for the “state institution of development,” which VEB turned into legislatively in July 2007. The document outlines VTB's basic activities and its financial parameters. The main bank's strategic goals include increasing its credit portfolio to between 900 billion rubles and 1.1 trillion rubles by 2012. On November 1, 2007, that portfolio consisted of 230 billion rubles. In addition, it will aim for a return on its capital of no less than 5 percent (compared to the 25 percent that is usual for commercial banks). The bank hopes to have no less than 30 percent of its portfolio taken up by state-private partnerships with a ratio of 2-4 private rubles to every bank ruble within five years as well.
The next stage of the strategy's development is due on March 1.
www.kommersant.com
All the Article in Russian as of Jan. 23, 2008
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