OREANDA-NEWS. In the course of the 12th International Investment Forum Sochi-2013 State Corporation 'Bank for Development and Foreign Economic Affairs (Vnesheconombank)', the Federal Project Finance Center and AVTOTOR Holding entered into an agreement on cooperation.

On behalf of Vnesheconombank the agreement was signed by Chairman Vladimir Dmitriev, on behalf of FPFC - by its acting Director General Alexandr Bazhenov and on behalf of AVTOTOR Holding - by its President Valery Draganov.

Under the agreement the parties intend to cooperate in preparing and implementing a project on the creation of a cluster of full-profile automobile production facilities in the Kaliningrad region. The project provides for constructing 5 full-cycle automobile plants up to 2020 and up to 16 plants to manufacture automobile components, transport and logistics infrastructure, housing, life-supporting sectors including a port, power engineering facilities, a city of new type and a modern international service engineering and training center.

Under the agreement this project is scheduled to be implemented with the use of PPP instruments applying Tax Increment Financing (TIF) mechanism. After construction completion and commissioning the facilities are to be transferred to state and municipal property. Expenses of private investors on creating infrastructure are to be compensated for from budgetary funds through taxes on operation of the facilities.