PJSC Sberbank : Sber named best PPP financing organization

Sber has won a Rosinfra award as the Best Financing Organization during the Russian PPP Week and its project called "Construction of an educational complex for 4,550 places in Nizhny Novgorod and the Bor urban district in Nizhny Novgorod Region" was named the Best P3 Project in Children's Infrastructure.

The jury recognized Sber's significant contribution to the evolution of P3 in the country, which allows stakeholders to build socially important facilities in housing and utility services, medicine, education, sports, transportation infrastructure and other areas quickly.

The bank cleared the financing of 48 PPP projects worth an aggregate of over RUB 20 bn in 2020 alone. The approaches Sber proposed constituted the core of standard terms being used to support the creation of infrastructure across economy sectors, from housing and utility services to the social sector. During the Russian PPP Week, to which Sber was the general partner, the bank signed several agreements that contribute to the attainment of Russia's national goals.

Mikhail Chachin, vice president and director of the State Sector Department:

"As a market leader in financing PPP projects, Sber has designed a wide range of 3P banking products. To attract investment across management levels faster, we have introduced out-of-the-box solutions and launched a builder for concession agreements approved by the bank, which was adopted in more than 15 industries. We have made a fundamental decision to not set a minimum project budget and try to enter deals at an early stage to achieve optimal terms for both the grantor and the concessionaire."

Sber's portfolio of regional and municipal PPP projects counts about 180 deals, with housing and utility services projects (heat supply, water supply and sewerage, solid waste management) accounting for over one-half of the portfolio. These projects have been financed in more than 40 regions of Russia and received over RUB 30 bn. Supporting ESG projects is yet another crucial line of work. Decisions have been made to finance the creation of modern waste sorting facilities for a total value of over RUB 45 bn in eight regions.

Sber is also the backbone bank behind the Education Development state program, attracting extra-budgetary investments by financing concessionaires and providing methodological support for projects at all stages of their implementation. More than 100 projects aimed at eliminating second shifts in educational establishments in 34 regions of the country are in the works.

Moreover, the bank established SberInfra, a special project company to implement educational, sport, and utility 3P projects, and assist the structuring of concession projects in any industry.

Russian PPP Week is the largest event in Russia attracting investment for infrastructure development purposes. More than 70 regions of Russia form delegations to participate in the congress annually. In 2020, the congress gathered approximately 1,000 people, including federal and regional authorities, businesses, funding organizations, business associations, and specialized experts. Over 5,000 people watched the webcast on the ROSINFRA platform.

Traditionally, Russian PPP Week events address the most pressing issues of attracting investment in infrastructure. A major part of this year's agenda is urban development and the implementation of social PPP projects in healthcare, education, tourism, and sports. Particular attention is paid to the program of co-financing the construction of schools in Russian regions, which is being implemented by the Ministry of Education of Russia, Sber, and VEB.RF. According to the terms of the program, over 647,000 new seats in schools are to be created in Russian regions by 2024. Other items on the agenda are: the development of transport infrastructure, implementation of power, housing and utility, and environmental projects.

Rosinfra is the only infrastructure development and PPP award in Russia. Backed by the Government of the Russian Federation, Rosinfra has a mission to identify key trends in infrastructure development in the country and mirror the best practices. The jury of the award includes representatives of Russian legislative and executive bodies, public associations, state corporations, and development institutions.