Projects financed by the EDB
Construction of business and hotel complexes in Astana and Minsk
Municipal infrastructure is EDB’s investment priority
The “difficult legacy” the newly independent countries inherited from the Soviet Union included the poor infrastructure in the cities and towns of that vast country, including the capitals and major cities which were the public face of each new country in the region. The state of municipal roads, railway stations, utilities and hotels was detrimental to the countries’ international image.
In the two decades since the collapse of the USSR, civic infrastructure has been developing and improving. However, even today, owing to lack of investment, only a few cities can boast “cutting-edge” infrastructure.
EDB is helping to address this challenge in its strategy to 2013. Approved in late 2010, this strategy identifies civic infrastructure as a key investment priority for the Bank.
Hotels represent one of the most urgent and, arguably, most visible investment challenge. The shortage of good quality hotels restricts tourism in the region, obstructing global initiatives to develop and expand cultural, business, scientific and other contacts and exchanges. It is widely acknowledged that it is easier to arrange a business forum to discuss the CIS investment climate in London than in any of the countries’ capitals.
The region’s construction industry, which has been booming since the start of the century, is now capable of offering world-class urban planning solutions, including the creation of business and hotel complexes within the region and abroad. Russian companies in particular have significant expertise in this sphere.
In December 2011, EDB began to finance its first municipal infrastructure project: the construction of a hotel and business complex in Astana. The Bank provided a
The complex was built by Astanapromstroy-M LLP, a subsidiary of Mospromstroy CJSC.
Mospromstroy CJSC is one of Russia’s construction market leaders. The company builds and renovates hotels, residential, industrial, civic and office buildings, and sports and healthcare facilities, and accounts for almost one third of Moscow’s construction market. Mospromstroy has constructed and renovated more than 2,000 buildings and millions of cubic meters of housing. Its flagship projects include the Marriott Grand Hotel, Marriott Royal Aurora, Marriott Tverskaya, Lotte Hotel, Holiday Inn Lesnaya, Holiday Inn Sushchevsky and the International Trade Centre at Krasnaya Presnya. The company has also built dozens of power plants and facilities, renovated the Moscow Operetta Theatre and the Stanislavsky and Nemirovich-Danchenko Musical Academy Theatre, and built the new stage at the Bolshoi Theatre.
The complex is in Astana’s new administrative centre, Yesil district. Under the Marriott brand, this
In November 2012, EDB committed funds to a similar project in Minsk, lending US $ 47 million to Russian company Mospromstroy-Hotel, a subsidiary of Mospromstroy established specifically to execute this project in Belarus. The loan proceeds were used to complete construction of the hotel and purchase equipment and materials. The hotel has 264 rooms and a large business centre and will provide four-star accommodation under the Renaissance brand.
In April 2014, Alexander Lukashenko, the President of the Republic of Belarus, attended the hotel’s official opening ceremony.
Gennady Zhuzhlev, Deputy Chairman of the EDB Management Board, said, “These projects will help to develop tourist infrastructure, which will foster the advancement of other sectors. They also have a social value, creating hundreds of jobs in the hospitality and related sectors. In addition, the project will contribute to the formation of an integrated trans-border hotel group in the EDB member states.”