PJSC Sberbank : Sber to finance construction of 15 new public schools as part of first phase of Education Development state program

Sber is financing 15 concession projects by OOO ProShkola to build new public schools in Buryatia, Kaluga Region, Belgorod Region, and Samara Region for a total amount of RUB 7.3 bn.

ProShkola subsidiaries have already signed loan agreements. According to an order issued by the Russian government, they are identified as the concessionaire entitled to sign concession agreements with subjects and municipalities without an auction when such agreements are aimed at the implementation of projects for the construction of public schools in the framework of the state program called Education Development. The state program stipulates federal budget subsidies to co-finance the expenditures of Russian regions arising from the implementation of projects that provide for the creation of additional seats in educational institutions amid a growing number of students.

As a result, 15 new schools for 7,000 students will have been built by the end of 2022 during the first phase of the program in partnership with ProShkola. Over 160 schools of the second and third program stages are in the pipeline, with the commissioning dates at the end of 2023 and 2024, respectively.

Mikhail Chachin, vice president, director of the State Sector Department, Sberbank:

"Sber is a key lender in concession projects to create additional seats in secondary schools in the framework of the state program called Education Development. These projects are a striking example of how effective public-private partnerships can be when it comes to the construction of social facilities. Indeed, there is a shortage of seats in schools due to the demographic situation in many localities, and in the next few years, the shortage will grow. A PPP is the best way to address this issue as soon as possible because thanks to the program, dozens of thousands of new school seats will appear in the next three years."

Alisa Denisova, CEO of ProSchool, executive director of the Business Unit, VEB.RF:

"Thanks to the well-coordinated work of the teams in the regions, Sber, VEB and ProShkola, all projects of the first phase have their sources of funding, both non-budgetary and budgetary. The construction of new schools will begin next year. Together with the local authorities, we are discussing the construction of new schools as part of the third phase, and together with our partners at Sber, we are designing applications. The decision to build schools through PPPs dramatically increases the number of new schools in the regions where the need is the biggest, and reduces the financial burden on local budgets significantly during the construction stage."