Gazprombank will finance the K1 heat generation project on Sakhalin

Gazprombank, #MEGAIGROK in the public-private partnership market, acting as a financing organization, and the limited liability company «Communal Heat Generation Infrastructure — Sakhalin» (part of the K1 group of companies) signed loan security documentation on financing a concession project for the creation and operation of heat supply facilities in the Sakhalin region. Also, as part of the signed loan agreement, the first tranche was issued to finance design and preparatory work. To implement the project, banking products will be provided for a total amount of about 15.5 billion rubles.

The project is being implemented under the mechanism of a regional concession within the framework of the gasification program approved by the government of the Sakhalin region and PJSC Gazprom and providing for the parallel construction of heat supply sources and gas supply networks in order to quickly solve the problems of gasification of Sakhalin Island. The project provides for the construction of 34 new gas boiler houses with a capacity from 1.6 to 81 MW, located in cities and towns of the Sakhalin region.

It is planned to switch from coal fuel to natural gas in order to improve the environmental situation and provide heat and hot water supply within centralized systems for both apartment buildings and those living in individual residential buildings, as well as commercial, non-profit and budget organizations.

“Gazprombank has significant experience in financing the creation of large socially significant facilities and has the resources and knowledge that can ensure the effectiveness of the implementation of such projects with high quality and on time. The bank is already actively working in the Sakhalin region in projects in a variety of industries, including in partnership with the K1 group of companies, to increase the economic potential of the region,” noted First Vice President Pavel Brusser.

“The implementation of such a unique project for the housing and communal services market will allow achieving rapid economic and socio-environmental effects for the Sakhalin region and is an example for scaling up experience in other regions of Russia,” emphasized Pavel Ovchinnikov, General Director of K1 Concessions LLC.