PPP IN INFRASTRUCTURE DEVELOPMENT

VNESHECONOMBANK’S EXPERIENCE

VEB AT A GLANCE

60.4bln. USDtotal assets

9.6bln. USDtotal equity

44.7bln. USDloan portfolio

FUNDING AND FULFILLING OBLIGATIONSIn February and November 2017, Vnesheconombank repaid 2 issues of its Eurobonds with a total nominal value of USD 1 350 mln. in accordance with the terms of the issue

VEB placed 5 issues of domestic bonds with a total nominal value of RUB 80 bln and USD 550 mln with settlement in Russian rubles

SOUND AND CONSISTENT GOVERNMENT SUPPORTVnesheconombank received subsidies in the total amount of RUB 107.6 bln.

CAR is maintained at above 15%

LENDING ACTIVITYVnesheconombank granted RUB 107.9 bln. of new loans

As at September 30, 2017 total loans to customers (after allowance for impairment) amounted to RUB 1 767.4 bln.

Strategic role for the Russian economy

100% state-owned entity with a unique legal status under ad hoc federal law not subordinated to the Bank of Russia

Supervisory Board represented by top government officials and chaired by Prime Minister

VEB is exempt from profit tax

Direct equity contributions from the Federal Budget –proven track record of Government Support

Total Assets of the Group represent more than 4.2%1 of Russia’s GDP

International credit ratings on par with the Russian sovereign

Russian Federation

Federal City

5 mln.inhabitants

St. Petersburg

VEB DECISION:

Fastest growing

Important port on the Baltic Sea

High technology industry

Attractive destination for tourists

ST. PETERSBURG

Lagging infrastructure(airport, road, connection with Moscow)

Insufficient investments for a long time

PROBLEMS:

PPP mechanism

Consortium of the largest banks

Involvement of private investors

NEW TERMINAL OF PULKOVO AIRPORT

Launched in December 2013

Built in 40 months - record short term

Design:English architectural bureau ”Grimshaw Architects”

The capacity increased from

14 million to 17 million passengers per year

11088172

60

passport control cabins

check-in counters

departure gates

runways with the width of

meters (3780 m & 3397 m)

144 mln. EUR VEB participation

1,16 bln. EUR total cost

144 payback period

WESTERN HIGH-SPEED DIAMETER(Intracity toll motorway)

2005 the beginning of construction of the fist section

2008 the first section of highway opened

2012 the second section of highway opened

2013 the beginning of construction of the third section

2016All the sections opened. Chairman of VEB Mr.Sergey Gorkov participated in the openingceremony alongside with the President of theRussian Federation Mr. Vladimir Putin

Launched in December 2016

464-8

9100

km - total length

road lanes

traffic junctions

thousand cars - average daily traffic

2 bln. USD total cost

430 mln. USD VEB participation

FEDERAL HIGH SPEED HIGHWAY MOSCOW-ST.PETERBURG (M-11)15-58 km

1,22254

2015

bln. USD total project cost

mln. USD VEB participation

highway opened Moscow Oblast section

2020 all sections of the highway will be open

7004-10

85150

km - total highway length

number of lanes

bridges

km/h speed limit

Part of the International “North-South” Transport Corridor

First Russian PPP – project in Road Infrastructure

13348

547318

years (2018-2030)term of construction

mln. USD total construction Cost

% interest rate

mln. USD total Cost

years – Payback period

PPP MechanismInfrastructure Bonds (Private investors)

Government Subsidy

Bank LoanResults

Social effect (comfortable & affordabletransportation to\from the Airport)

Jobs creation (during construction, maintenance & operation)

Tax flows (during construction)

Unique experience of usingPPP – mechanism in Public transportcan be replicated in the future

RAIL LINK TO AIRPORT

LESSONS LEARNT

High-tech infrastructure is never too much

Creates economic activity

Creates opportunities for privatecompanies

Capacity building is essentialNew approach to standard tasks

Companies and employees are ready to work with complicated projects

Government is ready to provide long-term guarantees

Government is ready to finance early stage projects

Advance thinking

Solve a problem before it arises

High quality forecast is the key

Long-term planning is crucial