RDIF teams up with Italian developer on $156m PPP

The Russian sovereign fund has also raised debt from Gazprombank to undertake a healthcare project in St. Petersburg.

The Russian Direct Investment Fund is partnering with Italy’s Pizzarotti Group to design, build and operate a healthcare project in Russia’s second-largest city.

The two parties will provide equity for the PPP via a newly created company, while Gazprombank will serve as financial advisor, lead arranger and lender to the RUB10 billion ($156 million; €138 million) project.

The agreement, signed in the presence of Russia’s and Italy’s heads of state, paves the way for the construction of a medical rehabilitation pavilion at a municipal hospital in the Resort District of St. Petersburg.

According to the 10-year contract, the project company is to carry out general maintenance of the pavilion but will not provide medical services. Construction is planned to start in the second quarter of next year.

“There is a big potential for implementation in health PPP projects in Russia. Active use of the PPP mechanism at the regional level will significantly improve the quality of medical services and their accessibility to the public,” said Kirill Dmitriev, RDIF's chief executive, in a statement.

The news came as the fund announced its first joint deal with CDC International Capital, a subsidiary of France’s Caisse des Dépôts. The two institutions have agreed to inject up to €250 million in Arc, a maker of tableware based in northern France that is billed by its new shareholders as the world’s largest.

In January, Infrastructure Investor reported that the pair’s debut joint deal would target the consumer sector, with construction and infrastructure likely to be next on the list.