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Russian Federation: Transport Sector Investment Loan

SUMMARY

STATUS
Approved
MEMBER
Russian Federation
SECTOR
Financial Institution
E&S CATEGORY
Category B
PROJECT NUMBER
000290

FINANCING

PROJECT TYPE
Stand-alone
APPROVED FUNDING
USD500 million
FINANCING TYPE
Sovereign

TIMELINE

CONCEPT REVIEW
July 5, 2019
APPRAISAL REVIEW/FINAL REVIEW
November 11, 2019
FINANCING APPROVAL
December 12, 2019
LOAN CLOSING/LAST DISBURSEMENT
August 2026

OBJECTIVE

The objective is to improve road network connectivity in key economic corridors.

DESCRIPTION

The Project is a sector loan facility that will provide road rehabilitation of selected subprojects. It will consist of two main components:

Component A: Financing of eligible transport subprojects that align with the country’s priority and AIIB Transport Sector Strategy. Application of AIIB’s Environmental and Social and Procurement policies to all subprojects will ensure high environmental, social, and procurement standards. The first subproject will be Section #26 of R-21 Kola Highway (“first subproject”).

Component B: Institutional capacity building. The sector loan will allow the capacity building of federal and local agencies during project implementation.

PROJECT FINANCING

For more information about project financing, please review the project summary.

ENVIRONMENTAL AND SOCIAL INFORMATION

AIIB’s Environmental and Social Policy (ESP), including the Environmental and Social Exclusion List (ESEL) and Environmental and Social Standards (ESS), is applicable to this Project. The Project is classified as Category B as an extensive list of E&S eligibility criteria is used to pre-select subprojects *OFFICIAL USE ONLY likely to have limited number of potentially adverse environmental and social risks and impacts that should not be unprecedented and generally not irreversible or cumulative, but instead should be limited to the Project area, and be successfully managed using good practice in an operational setting.

As per the steps defined in the Project’s Environmental and Social Management Planning Framework (ESMPF), each proposed subproject is required to go through a due diligence process to confirm their classification as Category B prior to AIIB’s determination as to whether it may be considered for inclusion in the Project and financed under the loan upon meeting all ensuing E&S requirements. The environmental and social due diligence (ESDD) conducted on the first subproject under consideration – the Section #26 of the R-21 “Kola” Highway - has confirmed its categorization as B. The necessary supplementary E&S studies to be completed to align this subproject with AIIB’s requirements have been defined, and their completion and disclosure will be required prior to commitment by AIIB to finance this subproject.

Please review the project summary for additional information.

PROJECT TEAM LEADER

Stefen Shin

Principal Investment Officer, Capital Markets

stefen.shin@aiib.org

 

BORROWER

Olga Polikarpova

Advisor
Department for Analytical Support of Foreign Economic Activity
Ministry of Economic Development of the Russian Federation

PolikarpovaOS@economy.gov.ru

IMPLEMENTING ENTITY

N/A

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