Sberbank will take part in financing a unique training center being created under a concession agreement signed by Nizhny Novgorod Region and First Concession Company Prosveshcheniye LLC.
Four educational buildings with a total capacity of 4,550 seats will be built in Nizhny Novgorod and the Bor urban district in Nizhny Novgorod.
The project objective is to launch the best school in Privolzhsky Federal District in terms of educational standards and designing solutions in 2021. The educational center intends to form individual educational paths and a unique communicative environment, and tightly integrate the general and supplementary education systems.
The project is valued at RUB6.2 billion (US$99.92 million) in total. The construction financing is set to rely on a loan from Sberbank, investor’s own money and the federal budget, which allocated funding for the 800th anniversary of Nizhny Novgorod.
The educational center creation will also help to solve a task of the Russian government under which all Russian schoolchildren will only attend morning sessions at schools by 2025 (now 30,000 children in Nizhny Novgorod Region attend afternoon sessions).
Sberbank suggested using concession mechanisms to speed up the construction of schools through private investments by developing educational documentation templates, referred to as out-of-box solutions. The investor covers up to 30% of the project cost and the bank provides a loan for the remaining 70%; property rights are put up as collateral under the concession agreement and signed documents. At the same time, a recommended concession agreement form featuring amendments and additions in accordance with the objectives of public and private parties may be used to meet the interests of investors and government agencies as much as possible.
