The Russian Direct Investment Fund (RDIF) together with Italian Pizzarotti Group will act as investors and Gazprombank – as financial advisor, lead arranger and lender for the Municipal Hospital no. 40 PPP project of St. Petersburg.

The agreement was signed in the presence of the President of Russia Vladimir Putin and the Prime Minister of Italy Matteo Renzi.

In early February we reported that Italian construction company Pizzarotti had been awarded the contract through a mixed company (Nevskaya meditsinskaya infrastruktura), of which it owns 71%, while the remaining 29% is held by Gazprombank.

The contract with the government of Saint Petersburg envisages the design, construction, management and maintenance of the civil works, installations and medical equipment of Hospital no. 40 involving the enlargement of the existing structure. The total construction cost is about RUB10 billion (US$156 million) and will be developed under public private partnership (PPP) model.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:

"We are pleased to announce a new project in partnership with a leading Italian construction company. There is a big potential for implementation in health PPP projects in Russia. Active use of the PPP mechanism at the regional level will significantly improve the quality of medical services and their accessibility to the public."