Russian Prime Minister V.V. Putin Meets Chairman of State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ V.A. Dmitriev

Transcript of the meeting’s beginning

V.V.Putin: Vladimir Alexandrovich, how is work proceeding on implementing your main projects?

V.A.Dmitriev: In general, we are working in accordance with the decisions taken by the Supervisory Board. In this respect, I’d like to inform you on the progress of implementing the project approved by the Bank’s Supervisory Board at its latest meeting. The project is aimed at building a terminal in Ust-Luga.

V.V.Putin: On the port as a whole.

V.A.Dmitriev: We made a decision to increase the financing amount to 550 million dollars. I was in Ust-Luga last week and I flew all over the district and I can tell you that the project is at a high level of preparation, here I mean berthing facilities, storage reservoirs, overhead roads. One overhead road is completed; foundations were laid for another two overhead roads for oil products transshipment facility and the port infrastructure. Administrative buildings and the custom house are at the highest level of preparation. We have enough grounds to believe that a transshipment facility with a capacity of 12 million tons will be commissioned next spring.

V.V.Putin: Where do you have problems there? How do they address problems in infrastructure, approach roads and channels?

V.A.Dmitriev: As far as infrastructure is concerned, some progress is being made with regard to railways, and the problem is going to be addressed properly.

In fact, we are coming up against problems associated with laying a high-voltage power transmission line, because the results of geological works performed earlier are not in line with the real situation. So, relevant decisions had to be made and technological solutions found would make it possible to address this problem comprehensively till next spring.

V.V.Putin: A deep channel?

V.A.Dmitriev: A deep channel is also being made and the work is being performed simultaneously with piling earth. In fact, while piling earth for berthing facilities they are making room for a deep channel.

V.V.Putin: Vladimir Alexandrovich, it’s not entirely your sphere of competence but for the money invested by the Bank to be used efficiently and to pay its way at proper time and for the project in all its aspects to be launched in due time and operate in the most efficient way you should address these problems comprehensively and completely with the Transportation Ministry.

V.A.Dmitriev: We are working in close contact with the Transportation Ministry, with the project’s initiators and with investors. The more so, this project is characterized by the fact that investors’ and the state bank’s participation share is 50 to 50. So, significant investments have been made.

V.V.Putin: By all sides?

V.A. Dmitriev: Yes.

V.V.Putin: It’s important for all these investments to be used efficiently.

V.A.Dmitriev: No doubt about it. And in this respect I’d like to bring up one more issue.  This is a new project in the field of civil shipbuilding. Besides the projects already approved for financing or those to receive financing in the near future, we started to comprehensively study a new Far Eastern project aimed at creating a Far Eastern shipbuilding center on the basis of the Zvezda plant.

This is a dry dock and a shipyard where they will produce tankers, gas carriers and drilling platforms. The project’s total value is 35 billion rubles and we plan that we’ll start financing it next year. We believe that construction work will start in the second quarter of the next year to be able to lay the first keel in 2011.

In our opinion, this is a very significant project in the Far Eastern region. It is of great economic and social importance, because it will create new jobs, generate tax revenues and will entail the development of parallel, related high-technology production facilities.

And, by the way, the Amurmetall plant will be given a good marketing outlet for its products.

V.V. Putin: Is the volume of orders going to increase?

V.A.Dmitriev: Yes, it is.

V.V.Putin: What’s your participation share there? Can you specify it numerically?

V.A.Dmitriev: As this project was initiated by the United Shipbuilding Corporation it is to be implemented on the basis of project financing. This means that for the most part it will be financed by Vnesheconombank. But taking into account orders from Gazprom, Rosneft Sovkomflot and a number of other companies the project’s payoff period might be 10-15 years. The project’s total value is 35 billion rubles.

Origin: Internet-portal of the Government of the Russian Federation