Areas of Development
In 2008, SOLEV priority development areas are the further diversification and broadening of its client base along with increasing the number of financed industrial facilities and large commercial real-estate parcels.
We are targeting our efforts toward creating at SOLEV a financial institution that is defined in special literature is a “merchant bank” and that so far has no analogues in Russia. Merchant banks are successfully operating throughout the word, acting as essential support points of the financial and investment community, especially regarding large structured investment projects and M&A and IPO transactions. Merchant banks are the organizers and in some cases quasiinitiators of such projects, assuming part of project risks and, thus, laying the foundation for the joining of the project by more conservative financial investors on terms that are understandable and acceptable for them.
In our terminology “merchant bank” means a symbiosis of high-level consulting in the sphere of forming and developing private companies, projects of public-private partnerships and the possibility to invest own means with the function of managing the implementation of projects in the initiator’s mode.
In 2008, SOLEV is planning to complete the development of a host of BOOT projects and begin their fulfillment.
1. A group of waste incineration plants linked to heating and power stations (HPS), working primarily on solid household waste. Such projects were successfully completed in Moscow. SOLEV is working on these projects not only in Moscow, but also in a number of large cities (Nizhny Novgorod, Makhachkala, Perm, Samara, Vologda and Saratov), the Ukraine (Kharkov and Odessa) and Kazakhstan (Astana). In the future, the geography of such projects will be expanded.
2. A number of regional heating and power plant projects based on the presence of large coalfields (mostly brown coal). We are dealing with complete cycle investment projects (coal mining, gas supply, building modern HPS based on gas-turbine units to boost efficiency, and integrated cost effective and environmentally sound processing of all types of waste). SOLEV fulfills works on such projects for clients in Khanty-Mansiisk Area, Tula Region (Russia), Astana and Ust-Kamenogorsk (Kazakhstan) and in the Ukraine (Sumy and Alexandria).
3. Starting from 2002, SOLEV, on commission from the Ministry of Nuclear Energy and a number of corporations, is working on an extensive program for the production of polysilicon and products of its subsequent processing as the raw material basis for the mass production in Russia of solar energy products. We have good reason to believe that the many-year experience that has been accumulated in this field will serve as a basis for starting commercial production of polysilicon in 2008-2009 on private public partnership and project financing principles.
Another area in which SOLEV operates through private public partnerships is regional development projects.
1. We provide consultations to the Academician Blokhin Russian Oncology Research Center, a government institution, on the program of modernizing, developing and commercializing its large real estate parcel with the aim creating on 50 hectares in Moscow a largest in Europe medical center equipped with latest treatment techniques such as, among others, a protonic therapy center, a rehabilitation complex and a pharmaceutical factory. The expected format of this transaction will be a concession. The operator of this project is a specially founded in 2007 foundation - The Science and Technology Anticancer Program Center – with SOLEV being one of its founders.
2. In 2007, SOLEV became the winner of a tender for an order from the All-Russia Exhibition Center (VVTs), a government joint-stock company, to design the concept of a long-term development program and create a financial and economic model for implementing this program on the basis of project financing and a private public partnership. The goal of the program is to create in Moscow, on an area of 246 hectares, a modern multi-functional exhibition and mass public education complex serving as a “Visiting Card of Russia and the City of Moscow” and which will also include recreation and entertainment sectors. In 2008 - 2009, work will continue on this prestigious project.
3. In 2007, SOLEV signed an agreement with Odessa City Administration for drawing up a socio-economic development program for this city. The key element of the program is to create private public partnerships that would encourage investment and, on its basis, to propose financing structures for improving the utilities sector and developing recreation areas.
4. At the end of 2007, SOLEV was commissioned to devise for the Government of Mongolia a model for financing the construction of a railroad (1,600 km) through Mongolia and Kazakhstan that would make the direct connection between Russia and China 1,500 km shorter. The planned type of this transition is a BOOT private public partnership. For the period from 2008 to 2009, this will be one of the largest and most important projects of SOLEV.