Sberbank approves financing of concession project of Prosveshcheniye Group on building unique educational center in Nizhny Novgorod Region
December 27, 2019, Nizhny Novgorod — Sberbank will take part in financing a unique training center being created under a concession agreement signed by Nizhny Novgorod Region and First Concession Company Prosveshcheniye LLC. Four educational buildings with a total capacity of 4,550 seats will be built in Nizhny Novgorod and the Bor urban district in Nizhny Novgorod.
The project objective is to launch the best school in Privolzhsky Federal District in terms of educational standards and designing solutions in 2021. The educational center intends to form individual educational paths and a unique communicative environment, and tightly integrate the general and supplementary education systems.
The project is valued at RUB 6.2 bln in total. The construction financing is set to rely on a loan from Sberbank, investor’s own money and the federal budget, which allocated funding for the 800th anniversary of Nizhny Novgorod.
The educational center creation will also help to solve a task of the Russian government under which all Russian schoolchildren will only attend morning sessions at schools by 2025 (now 30,000 children in Nizhny Novgorod Region attend afternoon sessions). Sberbank suggested using concession mechanisms to speed up the construction of schools through private investments by developing educational documentation templates, referred to as out-of-box solutions. The investor covers up to 30% of the project cost and the bank provides a loan for the remaining 70%; property rights are put up as collateral under the concession agreement and signed documents. At the same time, a recommended concession agreement form featuring amendments and additions in accordance with objectives of public and private parties may be used to meet the interests of investors and government agencies as much as possible.
Mikhail Chachin, Vice President and Director of the State Sector Department, Sberbank,
“Together with Prosveshcheniye Group we’ve joined a strategic pilot project that should launch the implementation of a whole set of unique concession projects in Russia on constructing the educational innovative infrastructure to empower Russian regions to accomplish top-priority social objectives. The structure of the project is based on an out-of-box education solution, and a peculiar feature of its financial structure is the use of a mezzanine loan.”
Gleb Nikitin, Governor of Nyzhny Novgorod,
“The project implementation will enable us to solve such urgent issues as queues to enroll in schools and doubled-shift schools. I hope that when taking into account Prosveshcheniye Group’s experience the educational center creation will increase the quality of school education and also bring together educational process, recreation and health improvement for children.”
Mikhail Kozevnikov, President, Prosveshcheniye Group,
“We see how much schools need a modern education infrastructure. We also notice that new schools meet construction requirements, but they are far from being ideal in terms of educational standards. That’s why Prosveshcheniye Group joins the project at the concept stage, even before the design start. We know how to plan the educational process, understand how it works and what parts it should consist of, how the school space should be configured to provide efficient education, and plan schools to meet all modern requirements of the educational process.”