July 13, 2010

Russian, German companies to build US$16 million grain elevator 

Russia's Tambov region-based Agroindustrial Investment Company and German grain elevator equipment producer Riela have signed an agreement to build a RUB499.4 million (US$16.2 million) grain elevator in the region, according to a spokesperson for the regional government.

Russia's Sberbank is expected to provide loans for the project, while the regional government plans to finance the project's infrastructure, including construction of a railway track to the facility, power transmission lines, and a gas pipeline.

Construction of the grain elevator, which is expected to have a capacity of 50,000 tonnes, is to be implemented in two stages. The first stage is expected to be completed before the 2011 harvest, while the full capacity is slated to be reached in 2012.