OREANDA-NEWS. February 03, 2011. State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’, the Russian Agriculture Ministry, the Lipetsk region Administration and the Trebunsky Integrated Sugar Mill “Korni” (LLC) signed an Agreement on cooperation in implementing the investment project to build an integrated sugar mill in the Lipetsk region.

The Agreement aims to establish partner relations and promote cooperation in implementing the investment project to build a modern integrated sugar mill with a sugar beet processing capacity of 12 thousand tons per day.

The project’s total value is 7.7 billion rubles, the project’s initiator’s (the Trebunsky Integrated Sugar Mill “Korni” (LLC)) own funds are 1.1 billion rubles and borrowed funds are 6.6 billion rubles. The project’s implementation period is 9 years. Tax revenues in the budgets of all levels are expected to amount to about 5.5 billion rubles.

Under the Agreement Vnesheconombank is ready to represent the interests of the parties to the Agreement at talks with banks and foreign financial institutions on raising financial resources for implementing the project as well as to work out proposals for raising funds to finance the project.

In its turn the Russian Agriculture Ministry undertakes to assist the project’s initiator in receiving subsidized interest rates on credits to be raised. The Lipetsk region Administration is to be responsible for ensuring compliance with the established spending obligations co-financing level as well as building of utility connections through using funds of the region’s budget and it will also help to get the most favorable tax regime to be put in place.

The project is being implemented with the assistance of the Lipetsk region Administration in the Trebunsky district on the territory of the industrial-production special economic zone. The project is included in the regional Program “Development of Agriculture and Regulation of Agricultural Produce, Raw Materials and Foodstuffs Markets of the Lipetsk Region for 2009-2012”.

The parties hope that the integrated sugar mill under construction can become a leader in Russia’s sugar sector both in terms of its processing capacity and technological base that uses innovation energy-saving technologies and that it would make a significant contribution to the region’s economic development.