Sberbank and VEB.RF join forces to modernise Orenburg’s air travel infrastructure

Funding has been secured to commence the construction of a new passenger terminal at Orenburg Airport. The primary financing terms were agreed upon during the St. Petersburg International Economic Forum (SPIEF) 2024, while the syndicated loan agreement was finalised in June earlier this year.

The project employs the innovative Project Finance Factory funding mechanism. The total cost is estimated at 18.6 billion RUB (₹1,748.4 crore), with 14.9 billion RUB (₹1,400.6 crore) sourced from financial partners.

Anatoly Popov, Deputy Chairman of Sberbank's Management Board, emphasised, “As agreed at this year's SPIEF, we have initiated funding for the new airport terminal in Orenburg, with the first tranche already transferred. Construction is progressing well, and Orenburg residents and visitors will soon witness the fruits of our labour. This project is of immense significance for the city, as we're establishing a new benchmark for port infrastructure and, essentially, crafting a fresh impression of the region, given that the airport serves as the gateway to the area. The new terminal will boost passenger traffic to 20 lakh (2 million) passengers annually and serve as a catalyst for the region's economic development.”

Ilya Torosov, First Deputy Minister of Economic Development, explained, “Our ministry's role as a regulator is to foster a favourable investment climate and distribute risk between the government, banking system, and businesses. The reconstruction of the Orenburg Airport complex exemplifies how regional authorities, in collaboration with leading national banks, are effectively utilising support measures developed by the Ministry of Economic Development. The Project Finance Factory provides long-term funding for substantial projects and hedges interest rates. We aim to expand the Factory's project portfolio from ₹1,88,000 crore to ₹5,64,000 crore (2 trillion to 6 trillion RUB) over the next two years.”

Yuri Korsun, Deputy Chairman of VEB.RF, added, “VEB.RF has financed and continues to finance 20 airports in major Russian cities. Through the Project Finance Factory, two regional airports have already been constructed and commissioned, with five more undergoing construction or renovation, and one project approved. These initiatives serve the public interest, create employment opportunities, and generate tax revenue for various levels of government. Orenburg will soon boast a modern, traveller-friendly airport. The new passenger terminal is slated for completion and commissioning in the fourth quarter of 2025.”

The passenger terminal's capacity will increase to accommodate 1,000 passengers per hour. The forecourt will undergo renovation, expanding parking facilities to 500 spaces. The new terminal building will span over 23,000 square metres across four storeys, interconnected by lifts, stairs, and escalators. The project also includes the installation of four jet bridges. Drawing inspiration from local culture, the architectural concept pays homage to the finely knit Orenburg shawl, a symbol of the region's rich heritage.

Source: VEB.RF