Support for the Client’s interests in the Investment Project “Comprehensive Programme for industrial and infrastructure development of the Republic of Komi, the Perm Territory and the Archangel Region (Belkomur Project)”.
Project Belkomur (White Sea – Komi – Ural) includes creating through rail communications Archangel – Syktyvkar – Perm and implementation on this basis of a complex of investment projects to create and develop industrial enterprises for production of potassium fertilisers, advanced timber processing, production of titanium and commodities on its basis, oil and gas refining, production of cement and building materials.
The Belkomur Project includes, specifically:
Transport section:construction of new railway sectors Kaporgy - Vendinga and Yazel – Solikamsk, as well as reconstruction of existing railway lines to increase their through capacity (the Archangel – Syktyvkar – Perm line). The overall length of the line is 1155 Km.
Industrial section: creation and development of industrial enterprises
- OJSC Mondi Syktyvkar – development and reconstruction (“Step” Project);
- OJSC Yarega-ruda – construction of a mining and chemical complex;
- OJSC Solikamskbumprom – construction of a new manufacturing line for producing newspaper paper;
- OJSC Bereznikovskiy alkali-works – production of brand “A” (heavy) calcified soda;
- OJSC Bereznikovskiy alkali-works – cement production;
- OJSC Uralkaliy – increase in the capacity and production of calcium chloride;
- JSC Silvinit – increase in the production of potassium chloride;
- OJSC Soda-chlorat – production of chloride and caustic potash;
- OJSC EuroChem Mineral and Chemical Company – construction of a mining and dressing combine for production of potassium fertilisers;
- OJSC Akron – construction of a mining and dressing combine at the Talitskoye deposit for production of potassium chloride;
- OJSC Enisei – construction of an oil and gas refining complex;
- Sosnovskiy wood-working combine – construction of capacity for production of plywood;
- Avisma (branch of OJSC VSMPO-Avisma Corporation) – increase of capacity for production of titanium products.
The total volume of capital investment required for implementing the Investment Project amounts to 598.1 billion roubles.
The Project is being implemented use public private partnership instruments, specifically using financing provided by the Investment Fund of the Russian Federation.
The intention is to raise 118.0 billion roubles from the Investment Fund for construction of two new sectors of the railway (including design costs of 3.7 billion roubles).
The volume of capital investments in private investment projects totals 480.1 billion roubles.
Law Firm Vegas Lex is the official legal consultant on the Project. This is not our first experience of supporting a Project of this type, but its scale and the volume of work involved does, even so, require serious efforts and professional skills. In particular, we are providing:
- - organisational and legal support for the structuring of the Project;
- - comprehensive support for implementation of the Project;
- - support for the process of agreeing the terms and conditions for participation by local investors in the Project;
- - support for the Project to pass through the relevant ministries and departments by furnishing the requisite legal commentaries and opinions.
Currently, the Project is in full swing. It is at the stage of an opinion being issued by the Ministry of Transport of the Russian Federation (in accordance with Resolution of the Government of the Russian Federation dated 1 March, 2008 No. 134 “On approval of the Rules for forming and using budget allocations of the Investment Fund of the Russian Federation”).
