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Financing of MDF

Non-Profit Organization “Monocity Development Fund” (hereinafter referred to as the Fund) signed a general cooperation agreement with the government of the Samara Region for the development of Togliatti monocity, whereby the Fund will be working with the region in the following areas:
  • co-financing of the costs of the subject of the Russian Federation in order to implement measures for the construction and (or) reconstruction of infrastructure necessary for the implementation of new investment projects in the monocity;
  • facilitation of the implementation of new investment projects in the monocity.
The purpose of these events is to form necessary conditions in Togliatti for the creation of new jobs, not related to the activities of city-forming organizations.
In terms of infrastructure activities, the Fund will co-finance regional budget expenses in the amount of up to 95% of the total cost for each item. At the same time, the first payment should be no more than 30% of the total amount of co-financing by the Fund.
The financing of new investment projects by the Fund shall take the form of participation in the share capital or in the form of a loan in the amount of not more than 40% of the total project cost; while the money volume of the Fund is more than 1.667 million euro, but not more than 16.667 million euros; the annual interest rate is 5%; the deadline for funding is 8 years. 
The amount of own funds of the project initiator must no less than 15% of the total cost of the project during the project investment phase. The investment phase of the project to be financed must not exceed 3 years. In cases of loan provision, a grace period on interest payments and repayment of the principal amount for a period not exceeding 3 years from the date of transfer of the first tranche of the Fund can be provided

Provision on the assistance in the preparation and (or) the participation of Non-Profit Organization “Monocity Development Fund” in the implementation of investment projects in single-industry municipalities of the Russian Federation (monocities) (approved by the minutes of the meeting of the supervisory board of Non-Profit Organization “Monocity Development Fund” of 05.08.2016, minutes No.27)