The Far East High Technologies Fund Invests RUB 200 Mln in a “Smart City” Project in the Primorye Territory

28 April 2021

The Far East High Technology Fund (FEHTF), invested in by VEB.DV, RUSNANO (a member of the VEB.RF Group) and RVC, has provided RUB 200 mln in funding to Digital Primorye LLC, a joint venture (JV) with the VessoLink Group, a pioneer of smart urban systems. The JV is focused on launching digital services and high-technology systems in the fields of transport, utilities, education, healthcare etc. in the Primorye Territory. It is anticipated that by April 2022, more than 30 services will have been launched.

The Digital Primorye project is a wide-ranging initiative aimed at developing a digital infrastructure and management system in the Primorye Territory, particularly in its four municipal areas - Vladivostok, Nakhodka, Artyom and Ussuriysk. The project is structured as a Public-Private Partnership (PPP). A concession agreement on the implementation of the project was signed on April 12, 2021, between Digital Primorye LLC, the government of the Primorye Territory and the city administrations of Vlavidostok, Nakhodka, Artyom and Ussuriysk.

The funding provided by the FEHTF will be used to carry out the initial stage of the integration of information systems. A unified digital portal and residents’ card will be introduced in the Primorye Territory, which will “digitize” the provision of services to residents, making it easier for them to receive benefits, pay for utilities and transport, and participate in the management of the urban economy. Infrastructure such as paid parking systems and smart traffic lights and street lighting will be introduced in Vladivostok, Nakhodka, Artyom and Ussuriysk.

The total investment in the project will exceed RUB 5 bln over the course of the 12 year term of the concession agreement, and will include funding from the FEHTF, private investment and bank loans.

Digital Primorye is the first infrastructure project to be established by the Far East High Technology Fund in the form of a PPP. Its aim is to boost the innovative development of the Russian Far East and to expedite the introduction of technologies to increase the quality of life and make the region more business friendly. To date, the Fund has invested more than RUB 1 bln in technology projects in the Russian Far East.

“The introduction of ‘smart’ systems will improve the transparency, flexibility and effectiveness of city management processes. And the PPP format, combined with the potential offered by IT, will enable us to make rapid improvements to the quality of life and to security in the region. The resulting synergy effect creates ideal conditions for the accomplishment of the Fund’s goals in the Far East, and therefore the project will be extended to other parts of this huge region,” said Ruslan Sarkisov, General Director of the Far East High Technology Fund.

“In addition to the long-term infrastructure projects, it is also important to highlight the initiatives which will have a positive impact on the lives of residents of the Far East in the immediate future. The implementation of the Digital Primorye project will improve local population’s living conditions by taking their requirements into account, and will create a digital infrastructure and make the urban spaces more comfortable for Primorye residents. Digital transformation has been set as a national goal, and it must be implemented at a regional level,” commented Artyom Dovlatov, deputy chairman of VEB.RF and a member of its Board of Management.

“The Fund is starting to develop a new generation of major high technology infrastructure projects, which have a great deal of potential for implementation at a larger scale, both in the Far East and throughout Russia. Projects such as Digital Primorye have a direct impact on the quality of life enjoyed by every resident of the region, making many services in the area of education, healthcare, rail transport etc. more accessible. The RUSNANO Group is now prioritizing projects which improve the lives of ordinary citizens in our country,” said Alisher Kalanov, head of the Investment Division of RUSNANO Management Company, and a member of RUSNANO’s Board of Management.

Additional information

Reference

The Far East High Technology Fund (FEHTF) was created in August 2018 on instructions from Vladimir Putin, President of the Russian Federation, and Yuriy Trutnev, Deputy Prime Minister and Plenipotentiary Representative of the President of the Russian Federation in the Far Eastern Federal District. The assets of the Fund amount to RUB 5 bln and as of April 2021 it had invested a total of RUB 1 bln. The Fund has financed Hotlead and Visitech, high-tech companies in the Far East, as well as companies involved in the localization of manufacturing in the region, including Promobot, a manufacturer of robots, Cinemood, a developer of portable television projectors, Motorika, a producer of bionic prosthetics, Titan Power Solutions, a developer of supercondensers, and Digital Primorye, a project to introduce “smart” information systems. The Fund’s investors are VEB.DV, RUSNANO (a member of the VEB.RF Group) and the Russian Venture Company (RVC).

For more information, please visit vostokventures.ru

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The VessoLink Group is one of the leaders in the implementation of traffic management technologies, telematics and IT projects, and smart city systems. The Group includes more than 20 companies in Russia and abroad engaged in production, technical and research activities. More than 100 systems implemented by the VessoLink Group are currently in operation. Its completed projects include the Yandex.Traffic service—in partnership with Yandex, the launch of the Roadinformer traffic information system, and the creation of an automated traffic management system for Moscow’s 3rd Ring Road and an automated data collection system for the Moscow Ring Road.

For more information about the company, please visit vessolink.ru

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The RUSNANO Group includes the RUSNANO Joint Stock Company, the RUSNANO Management Company and the Fund for Infrastructure and Educational Programs. Thanks to RUSNANO’s investments, there are currently 138 factories and R&D Centers opened in 37 regions in Russia.