VEB.RF, FEDF and Gazprombank will finance construction of new passenger terminal in Novy Urengoy

VEB.RF, the Far East Development Fund (FEDF, VEB.RF Group), Gazprombank, and Urengoyaeroinvest have agreed on the basic terms of financing for the airport expansion project in Novy Urengoy. A respective agreement has been signed on the sidelines of the Fifth Eastern Economic Forum (Vladivostok).The project’s total value exceeds RUB 10 bln.

Investing in infrastructure, specifically, in the upgrading of major air hubs, including the construction and overhaul of airport terminals, is one of the key priorities for our development institution. We have several overlapping objectives in this area: creating infrastructure, raising the living standards in the city, developing agglomerations and regional connectivity, as well as promoting the Integrated Plan of Backbone Infrastructure Modernisation and Expansion — with 50% of domestic flights to bypass Moscow.  The new passenger terminal will enhance the passenger service quality and increase the airport capacity", Nikolay Tsekhomsky pointed out.

Loans will be provided with an eye on building a new passenger terminal for domestic flights, with total area nearing 18,000 sq m. At the first stage, it will be equipped with three jetways and 12 check-in desks. The terminal’s capacity will reach 840 passengers per hour and 1.5 mln passengers per year. The project also envisions a full-fledged overhaul of the runway and taxiways along with construction on a new apron. The building and rebuilding works will not interfere with the airport’s regular operations.

Gazprombank served as financial advisor for the Project at the stage of preparing a bid for the concession tender and during the time of transaction completion, when the terms of the concession agreement were being discussed. Execution of the agreement on the terms of financing is an important event within the framework of financial closureresulting in the execution of the loan agreement and the disbursement of funds”, says Alexei Belous, Deputy Chairman of the Management Board, Gazprombank.

New transportation hubs are much-needed in the Russian Far East and Arctic Region. The passenger terminal at Novy Urengoy is the first Arctic project of the Far East Development Fund. It taps into the successful experience of financing a new passenger terminal for domestic flights in Khabarovsk that has been completed and will welcome its first passengers in the near future”, says Chief Executive Officer of the Far East Development Fund.

The renovation is due to commence later this year and will be completed till the end of 2021. This project is part of a concession agreement between the regional government and Urengoyaeroinvest. Revamping of the Novy Urengoy airport is Russia’s first project of airport infrastructure development, implemented under the law on concession agreements.

VEB has financed the construction and overhaul of nine airports. Currently, VEB.RF is reviewing three projects involving the construction and remodelling of eight regional airports, totalling to more than RUB 14 bln.