OREANDA-NEWS. September 19, 2011. In the course of the 10th Sochi 2011 International Investment Forum, State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and the Karachaevo-Cherkess Republic entered into an Agreement on Cooperation.

On behalf of Vnesheconombank the Agreement was signed by Vnesheconombank Chairman Vladimir Dmitriev and on behalf of the Karachaevo-Cherkess Republic - by Republic Head Rashid Temrezov.

The Agreement provides for promoting long-term and effective cooperation in the investment activity and establishing strategic partnership.

Under the Agreement the Parties intend to cooperate in raising funds to finance investment projects among other things on the conditions of public private partnership, work out schemes to fund them, cooperate in conducting expert examination of projects, participate in making arrangements for providing support for small and medium-sized enterprises.

In its turn, Vnesheconombank is to coordinate interaction of the Republic with VEB’s subsidiary banks.

Under the Agreement the Karachaevo-Cherkess Republic submitted a list of investment projects scheduled to be implemented on the Republic’s territory to Vnesheconombank.

The total value of the projects submitted by the region to Vnesheconombank is about 20 billion rubles; Vnesheconombank’s potential participation share is 9.7 billion rubles. As a result of the projects’ implementation revenues in the budgets of all levels are expected to amount to 3.2 billion rubles. More than 6 thousand jobs are planned to be created.

The parties formed a working group to coordinate activities of the Karachaevo-Cherkess Government and Vnesheconombank’s Representative Office in the city of Pyatigorsk. These activities will aim to select high-priority investment projects to be implemented in the region.

This Agreement’s implementation would help to boost investment activity in the region, address issues of the Republic’s socio-economic development and enhance its economic and industrial potential.

As of August 1, 2011, 3 investment projects worth 10.9 billion rubles to be implemented in the Karachaevo-Cherkess Republic are under consideration at Vnesheconombank. Vnesheconombank’s participation share is 6.7 billion rubles. The projects’ implementation is expected to create more than 1800 jobs, increased budget revenues will amount to 3.5 billion rubles.