Vnesheconombank to finance Kazbek industrial park in Chechnya

The Vnesheconombank Supervisory Board (VEB) has approved funding for the project to create a Kazbek technology park for the production of building materials in Chechnya, said the Vnesheconombank chairman Vladimir Dmitriev. According to the project four enterprises will be built in the CR: a plant for the production of concrete blocks of autoclaved maturing, fiber cement products, dry building mixes and industrial lime. The Shali district of Chechnya is chosen for building the industrial park.

The structure of the transaction provides for entry of the North Caucasian development into the corporation capital - said Dmitriev. Today we have discussed the issues related to the reformation of individual projects, with access to the universal scheme of project preparation and from the investors’ point of view, and the debt-to-equity ratio, - said the head of VEB.

The total project cost is estimated at 4.9 B RUR, 4.4 B of which is a loan from Vnesheconombank.

Virtually all raw materials will be produced at local open-cut mines. The term of project implementation is two years. Enterprises are hi-tech. 250 people will be provided with jobs, - said Ilmadi Abuezidov, the Kazbek production-commercial firm General Director.

In addition, it was reported that the bank will also allocate $ 300 M at the first phase of Udokan copper deposit development in Transbaikalia (enters the top five largest in the world). These funds will be spent on feasibility studies, design and estimate documents and the advance payment on the production of long-term cycle equipment, said Mr. Dmitriev. The entire project of Udokan development is estimated at $ 5 B.