OREANDA-NEWS. February 24, 2011. Eurasian Development Bank (EDB) and the State Corporation "Bank for Development and Foreign Trade (Vnesheconombank)" have increased the limit of the loan facility for the construction of Tikhvin carriage-building factory in Leningrad oblast from USD430 m to USD660 m. In  doing so, Vnesheconombank and EDB will disburse USD330 m each to Tikhvin carriage-building factory (TCBF), reported the press-centre of KASE.

An agreement on opening of an un-revolving loan facility for the creation of a hi-tech production based on a new carriage-building factory in Leningrad oblast was signed by Vnesheconombank, EDB and TCBF in October 2008. The funds are intended for the constriction of the factory, purchase of equipment, putting of the factory into operation.

The increase in the borrowed funds is caused by increased automation of the manufacturing, and by an increased capacity of production of new-generation carriages and highly-deficit cast necessary for carriage manufacturing.

The total capital expenditures on TCBF exceed USD1 bn making it the largest industrial project of its kind in Europe. Putting it into operation is going to be executed stepwise during the current year.

The project has been implemented with the support of an investment-industrial holding - the "IST" group of companies; the construction and technological engineering will be done by the Russian ISM, a joint venture between the "IST" group of companies and the engineering holding BARAN Group (Israel). The enterprise is a modern factory with a full technological cycle capable of manufacturing new-generation carriages with improved technical features.

The main factors of demand for the new factory's output are the need for refreshment of the obsolete pool of carriages, a drastic increase in demand for new-generation carriages due to the growing goods turnover, as well as an increasing demand on the part of the long-distance rail transport all along gage 1520.

The project on creation of a hi-tech manufacturing of carriages is in line with the strategy and mission of both banks:

- The project implementation stipulates a mass production of new carriages   which is going to promote the development of the transportation industry in Russia and increase the efficiency of the railroad transportation, and prevent emergency situations possible due to obsolete equipment.

- The project implementation will create 3,500 new working places and increase taxes collectable.

- The project is characterized by a high value added and is a priority sector for the banks (machinery building and transport).

- The project will promote the economic integration between the Russian Federation and countries of Eurasian Economic Union and CIS, strengthening of the CIS common transport area, the export of goods to those countries.