Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

07 May 1997



PSD disclosed:

18 Apr 1997


Project Description

The project is aimed at the restructuring of St Petersburg's high-cost short-term debt in order to stabilise the city's financial position, and to implement a prioritised medium-term investment programme.

This operation helps to: a) restructure St Petersburg's high-cost short-term debt so that the city is able to stabilise its financial position and finalise and implement its investment programme; and b) ensure that the city continues to implement measures to improve its financial management and investment planning, which will enhance the city's creditworthiness and help to attract private capital to partially finance its investment programme.

Transition Impact

The EBRD has accelerated and directly assisted the process of St Petersburg's municipal reforms in a wide range of areas, including a comprehensive set of reforms of municipal finances, restructuring of municipal services and reforms in the related legal and regulatory framework. As a result of this cooperation, St Petersburg is already on the verge of establishing itself as a creditworthy borrower on the international financial markets. The project directly helped introduce St Petersburg to the Eurobond market.

In the framework of its cooperation with the St Petersburg authorities, the Bank has contributed directly and through a large number of Technical Assistance programmes to a transfer of financial, managerial, organisational and strategic planning skills to the local government and set standards for market-oriented behaviour patterns. The results of this learning-by-doing process are being experienced well beyond the specific project, primarily through the city's interactions with its business clients and the lower levels of the local government.

The Client

The city of St Petersburg.

EBRD Finance

A Framework Loan Agreement of up to US$ 100 million signed in July 1998, with a first tranche of US$ 30 million signed in August 1998, and a second tranche of US$ 15 million signed in November 1998. The project also had a Eurobond issue of US$ 300 million. The EBRD co-lead managed the Eurobond issue in June 1997, with EBRD participating in its financing with US$12.5 million.

Project Cost

US$ 400 million.

Environmental Impact

There are no direct environmental issues associated with this project.

Technical Cooperation

a. Developing the city's investment planning and programming ability.

b. Developing the city's borrowing programme.

c. City revenue enhancement and transport sector efficiency audit.

Other technical cooperation projects have also been completed.


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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