The Russian Federation and the International Bank for Reconstruction and Development (the IBRD) signed Loan Agreement No. 7999-RU for the Preservation and Promotion of Cultural Heritage in Russia Project (the Project).

On the Russian side, Project implementation is governed by the Ministry of Culture of the Russian Federation. The Saint Petersburg Foundation for Investment Projects (FISP), acting under Agency Agreement No. 01-01-06/17-69, dated April 28, 2011, between the federal Ministries of Finance and Culture, on the one hand, and FISP, on the other, was approved as the Project Implementation Unit.

The Project goal is to preserve cultural heritage and promote its use as a resource for socio-economic development of several Russian regions.

There are four participating regions: Leningrad, Novgorod, Pskov and Tver Oblasts. Lessons learned under the Project may be subsequently disseminated in other Russian regions.

Amount of borrowings: IBRD Loan No. 7999-RU of USD100.0 million.

Counterpart funding from the federal budget: USD258.3 million equivalent.

Project components/parts:

1.     Integrated Heritage Site Development;

2.     Protection of Museum Assets;

3.     Project Management and Monitoring.

The key Project objectives are to: (i) support the conservation, safekeeping and promotion of cultural heritage assets in four Oblasts of the Russian Federation; and (ii) strengthen regional capacity for cultural heritage management to contribute to the socio-economic development of the four Oblasts.

Project implementation is supported by the IBRD Loan and co-financed by the Russian Federation.

In addition, the Project is expected to attract funds from the budgets of the participating regions, local budgets and private investors.