Following the signing of a concession agreement to operate Pulkovo Airport last week, the city of St. Petersburg in Russia is gearing up to launch another infrastructure investment scheme.
St. Petersburg is set to launch a tender later this month for a PPP project to process the city’s waste over a 30-year concession period. An investor roadshow for the project was held in London earlier this week. The winning bidder for the scheme will be required to design, build, finance, operate and transfer a 350,000-tonne waste processing plant, which is planned to be located at Yanino.
The procuring authority has mandated VTB Capital, DLA Piper and Arup as the project’s financial, legal and technical advisors respectively. VTB Capital’s co-head of global banking Oleg Pankratov said the predictable cash flows of the project should help to attract bank financing, adding that the scheme has “serious political support.”
The project, which has an estimated capital value of €200 million ($298 million), will be the first infrastructure project in the waste management sector in St. Petersburg. VTB Capital said the signing of an agreement with a winning bidder is earmarked for the end of 2010.
Last week the Northern Capital Gateway consortium, comprising German airport operator Fraport, VTB Capital and Greek investment conglomerate Copelouzos Group reached an agreement to operate St. Petersburg’s Pulkovo Airport for a 30-year concession period. The syndicate said it plans to invest €1.4 billion in the airport as part of the agreement.
Other major PPP projects to take place in St. Petersburg in the past include the Orlovsky Tunnel, the Western High Speed Diameter motorway and the NadEx light railway.