OREANDA-NEWS.  February 21, 2014. VTB Bank, the Orenburg regional government and ListPromStroy have signed a state contract to construct a oncology centre, as well as a loan agreement to finance the project as a public-private partnership.

The documents were signed by VTB Bank Management Board member Chaba Zentai, First Deputy Governor and First Deputy Prime Minister of the Orenburg Region Sergei Balykin and ListPromStroy CEO Sergei Petrov.

VTB will issue a seven-year, 963-million-ruble loan to ListPromStroy — the project’s general contractor — to build the centre in the Orenburg Region town of Orsk.

In addition, the bank has issued the contractor a performance bond in favour of the customer — the Orenburg Region State Publicly Funded Agency for Housing, Utilities and Social Construction — for 133.5 million rubles over a 2.5-year period.

VTB is investing a total of 1.096 billion rubles in the project.

"We are pleased to have this opportunity to provide long-term investment for this vital social project as a public-private partnership," VTB Bank Management Board member Chaba Zentai said. "PPP is an effective form of financial cooperation between state and business that can address regional infrastructure problems in a targeted way. I am confident that the project will drastically improve the healthcare system and people’s quality of life in the Orenburg Region."