On 24 September the RUR 145 mln worth Supplementary Agreement for the implementation of social programs for the benefit of population of the city of Novorossiysk was officially signed at the Caspian Pipeline Consortium (CPC) Marine Terminal.
Nikolay Brunich, CPC General Director, and Vladimir Sinyagovsky, head of the Novorossiysk city administration, signed the next, second in succession, Supplementary Agreement to the effective Agreement for the Cooperation in Social Area under the Expansion Project. The amount of CPC planned investments is RUR 145 million.
The first social program aimed at Renovation of City Polyclinic No.2 for the total amount of RUR 48 million has already been approved by now. The design stage will commence in the nearest future. Also under consideration are sports and cultural projects.
This amount has been allocated to the city in addition to RUR 150 million already assimilated earlier for the implementation of two social projects in Glebovskoe village: a kindergarten acknowledged the best based on the results of the 2015 competition organized by the Krasnodar Krai administration and a mini football pitch of school No. 31 as well as acquisition of the intercity bus for the Chernomorets football club youth sports school.
Moreover, CPC continues to provide social assistance on an annual basis: it is planned to spend almost RUR 60 million this year, among others for the acquisition of new buses, special vehicles for weather emergencies as well as medical equipment and vehicles for the city of Novorossiysk.
CPC makes tangible contribution to the regional development in the form of taxes to the Krasnodar Krai budget and local budget. Over 4.5 years the contractors have paid taxes and levies in the amount of almost RUR 1.1 billion of which almost RUR 234 million to the Novorossiysk city budget.
CPC General Director Nikolay Brunich assured that CPC will further support the social sphere of the city and its population. In his turn the Novorossiysk city mayor Vladimir Sinyagovsky thanked CPC on behalf of the city administration for the serious approach to the implementation of social programs in the interests of all sections of population, the children and the youth first of all.
CPC pipeline system is one of the largest investment projects in the energy industry with participation of foreign capital on the CIS territory. The length of the pipeline connecting the oil fields in Western Kazakhstan with the Marine Terminal near Novorossiysk is 1,511 km. CPC Marine Terminal is equipped with single point moorings which allow for safe tanker lifting at a considerable distance from the shore, also when the weather conditions are unfavorable.
The Expansion Project includes rehabilitation of 5 existing and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six new storage tanks (100,000 cu.m each) in addition to the existing four near Novorossiysk and a third SPM at the CPC Marine Terminal, and also the replacement of an 88 km pipeline section in Kazakhstan with a larger diameter pipe. The total amount of the Project investments will be US$ 5.4 billion.
CPC Shareholders: Russian Federation (represented by Transneft – 24% and CPC Company – 7 %) – 31%; Republic of Kazakhstan (represented by KazMunayGaz – 19% and Kazakhstan Pipeline Ventures LLC – 1.75%) – 20.75%; Chevron Caspian Pipeline Consortium Company - 15%, LUKARCO B.V. – 12.5%, Mobil Caspian Pipeline Company – 7.5%, Rosneft-Shell Caspian Ventures Limited – 7.5%, BG Overseas Holding Limited - 2%, Eni International N.A. N.V. - 2% и Oryx Caspian Pipeline LLC – 1.75%.