DUBAI's BITUMINA GROUP joins in 2 billion USD Russian PPP partnership

BAOLI BITUMINA Singapore, a J/V subsidiary of two global bitumen leaders - Shenzhen listed JIANGSU BAOLI ASPHALT and BITUMINA GROUP, has signed multiple memorandums and agreements with different Ministries and Authorities of the Government of the Russian Federation during the 12th Krasnoyarsk Economic Forum, February 27-28th, 2015.

BAOLI BITUMINA (BBS) has signed MOU’s with the Ministry of Transportation of the Russian Federation’s Federal Highway Administration Authority “ROSAVTODOR”, Russian State Company “AVTODOR” which is in charge of paid roads and the Ministry of Far East Development of the Russian Federation for a total Investment package of 2 billion USD.

BAOLI BITUMINA will invest about USD 250 million into Industrial Plants & Ports set ups in Russia and about 1.8 billion USD will go into Russian Infrastructure BT, BOT & PPP Projects. From the total 1.8 billion USD 1.3 billion will go into Moscow Region (Central Federal Region) & 500 million will go into the development of the Far East of the Russian Federation. The Investments of BAOLI BITUMINA will be leveraged by investments of the Russian Federation and create financing opportunities for some 4-5 billion USD of Infrastructure projects.

By these agreements BAOLI BITUMINA will be building a vertically integrated crude to pavements (road) company on the territory of the Russian Federation and invest in Refining Capacity of 2 million tons per year to produce high quality straight run low paraffinic bitumen as well as medium and light distillates, own and operate their own oil field(s) and set up two Industrial Plants for production of Hi-Tech Polymer Modified Bitumen and Hot Mix Asphalt.  In the plant in the Far East, the company shall also produce Hi-Tech Roofing & Waterproofing Materials. To complete integration into the full production cycle of construction materials for pavements, BAOLI BITUMINA shall also be investing in high quality quarries to produce high quality aggregates. The Industrial Plants will service both the local market and focus on monetizing on exports to China, Japan, Europe and Africa.

BAOLI BITUMINA are also setting up the first advanced material sciences laboratory for pavement & binder engineering, based on Russian, Chinese and Superpave® Standards in association with a leading Russian Material Sciences Universities in Moscow to assist in developing and applying new technical standards in Russia.

Mr. Dmitry PRONCHATOV of ROSAVTODOR & Mr. Alexander OSIPOV, deputy Minister of Far East Development of the Russian Federations signed the agreement with Dr. Dehong ZHOU, chairman and Dr. Bernd SCHMIDT, CEO of BAOLI BITUMINA in the 12th Krasnoyarsk Economic Forum. Mr. PRONCHATOV expressed that this is the first Investment and agreement of its kind and shall serve as a platform to attract more Asian Investments into Russian Infrastructure and PPP projects.

On the Sidelines of the 12th Krasnoyarsk Economic Forum, Mr. Sergey KELBAKH of Avtodor also agreed participation of BAOLI BITUMINA to bid for several PPP Paid concession projects in Moscow Region, including parts of the M-11 Moscow - St. Petersburg Highway, two sections of the new Moscow Central Ring Road (CKAD), portions of the M-4 Don Federal Highway, and shall be signing a joint MOU in Sochi in April, 2014.

Before the Krasnoyarsk Economic Forum, BAOLI BITUMINA also agreed to invest and participate in 2 projects for the Moscow Region Government and Moscow Government, and shall be assessing the projects in further detail.

Dr. ZHOU expressed their great respect for Russia and that they are proud to have chosen Russia for BAOLI BITUMINA’s first major global investments. Dr. ZHOU has further expressed that he is pleased that they have received good support on a Government level from both Russia and China to enable them to realize such ambitious investment program and are keen to attract further Chinese partners to increase their amount of investments and development of Russian Infrastructure in the framework of Sino-Russian bilateral cooperation and friendship.

BAOLI BITUMINA shall start their project implementation in Russia in April 2015 and work together also in other key countries and markets on the same business model.