RDIF and Veolia strengthen cooperation and announce investment in Tomskvodokanal
Press release, 09.10.2018
Moscow, October 9, 2018 - The Russian Direct Investment Fund (RDIF), the sovereign wealth fund of Russia, and the Veolia group, a leading French utility operator specializing in water supply and sewage management, heat and power supply and waste recycling, have agreed the terms for the establishment of a joint venture for investing in Russian utilities. Investment in Tomskvodokanal, which manages the water and sewage infrastructure in Tomsk will be the partners’ first joint project.
The agreement was signed today on the sidelines of the Forum "Investing in Regions − Investing in the Future". The event has been organized by RDIF and the Federation Council of the Federal Assembly of the Russian Federation with support from the Agency for Strategic Initiatives to Promote New Projects. The parties plan to close the deal after receiving approval from the Federal Anti-Monopoly Service and the Government Commission for Control over Foreign Investment.
The partnership between RDIF and Veolia combines a deep understanding of the Russian market and world best practice in municipal management and will improve the quality of services and the efficiency of Tomskvodokanal. This will ultimately benefit all consumers in Tomsk. Tomskvodokanal supplies water and sanitation services for more than 500,000 people, serving 750 km of water supply and 520 km of sewage networks based on a long-term agreement.
The parties are also considering the possibility of investing in the upgrade of the hazardous waste disposal system for and garbage processing in Tomsk, as well as the integrated management of utility systems in other Russian regions.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
“RDIF is focused on attracting foreign investments to Russian regions. Today RDIF and partners have invested in projects across 95% of Russian regions. The joint project with the world's largest water supplier and drainage operator, Veolia, will bring global best practice and innovation to the Russian utilities sector, which will ultimately improve the quality of life in Tomsk and other Russian cities. ”
Philippe Guitard, Senior Executive Vice President of Veolia, Member of the Veolia Executive Committee, said:
“For more than ten years, Veolia has been investing in the development of the utilities sector of the Russian Federation. The joint project with RDIF in the Tomsk region is the beginning of a long-term partnership and an example of cooperation between the Russian sovereign wealth fund and the world leader in water supply and sanitation. With the support of RDIF, the experience and technologies of Veolia will be available for the Russian regions, and the scale of joint projects will speed up the modernization of the municipal infrastructure. ”
Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Further information can be found at www.rdif.ru
Veolia group is the global leader in optimized resource management. With nearly 169,000 employees worldwide and consolidated revenue of €25.12 billion in 2017, the Group designs and provides water, waste and energy management solutions that contribute to the sustainable development of communities and industries. Through its three complementary business activities, Veolia helps to develop access to resources, to preserve available resources, and to replenish them. Further information can be found at www.veolia.com
For additional information contact:
Russian Direct Investment Fund
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
Andrew Hayes / Andrew Leach
Tel: +44 (0) 20 7796 4133