News / MegaProject 314: Avtodor tenders three highway PPP projects

MegaProject 314: Avtodor tenders three highway PPP projects

🕔 September 19, 2014

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The State Company Russian Highways, Avtodor, has launched three tender processes to develop the M3 Ukraine (sections 124-173 km and 173 -194 km), the section 5 of the Moscow Central Ring Road (CRR) and the 4th section of the M-11 Moscow - St Petersburg highway

The projects will be developed a under long-term investment agreement, which is one of the types of public-private partnership (PPP) agreement used by Avtodor.  It is a mixed civil law agreement envisioning obligations of the private partner to build and operate (including current and capital repair and maintenance) the road for the term of the agreement, to co-finance construction using its own funds and raised borrowed funds.

The State Company reimburses the contractor for the costs of operating the road in the form of availability payments and reimburses, in installments, the private capital invested at the construction stage, based on the standard returns on the invested capital envisaged by the agreement.

M3 Ukraine project

M3 Ukraine project involves the reconstruction, maintenance, current and capital repair and toll operation of the road from Moscow to the border with Ukraine (on to Kiev) passing through the cities of Kaluga, Bryansk on sections km 124- km 173 and km 173 - km 194. The total project investment is estimated at RUB15.6 billion (US$405.6 million). The contract period is 23 years.

The project was approved on 31 December 2009. The highway is a keystone for granting intensification of social-economic, industrial, trade and cultural ties between dynamically developing regions of the Russian Federation, being the city of Moscow, Moscow region and Kaluga region, and also territories between Russia and Ukraine followed by lands in the direction of countries lying in south-east Europe.

Interested parties must submit their proposals on or before 27 October 2014. A road-show is scheduled to be held on 30 September.

See Information Memorandum:

http://infrapppworld.com/wp-content/uploads/32014-07-22-..pdf

Section 5 of the Moscow Central Ring Road (CRR)

The 76.44 km section 5 of the Moscow Central Ring Road (CRR) project involves the construction, maintenance, current and capital repair of the road. The project is located  in the Naro-Fominsk, Odintsovo, Istra and Solnechnogorsk districts and the Zvenigorod Urban District of the Moscow Region. The total project investment is estimated at RUB36.6 billion (US$951.2 million). The contract period is 24 years.

The purpose of building the Central Ring Road of the Moscow Region is to create the conditions for forming a modern transport infrastructure integrated into the network of international transport corridors, to unlock the transit potential of our country and to facilitate the servicing of traffic flows outside the central part of the Moscow transport hub, while reducing the traffic burden of its road network.

Interested parties must submit their proposals on or before 23 October 2014. A road-show is scheduled to be held on 23 September.

See Information Memorandum:

http://russianhighways.ru/en/for_investor/open_tenders/ckad5/InfoMemo-CRR5_eng.pdf

4th section of M-11 Moscow-St Petersburg highway

The 4th section of M-11 Moscow-St Petersburg highway (km 208 - km 258) involves the construction, maintenance, current and capital repair and toll operation of the road. The total project investment is estimated at RUB30.88 billion (US$802.5 million). The contract period is 23 years.

Interested parties must submit their proposals on or before 23 October 2014. A road-show is scheduled to be held on 23 September.

See Information Memorandum:

http://russianhighways.ru/for_investor/investitsionnye-konkursy/mocow-spb/about/presentation_ckad5_m11_en.pdf

Other projects

We also have in our database two more road PPP projects in tender stage that are related to those three new business opportunities: the third section of the Moscow Central Ring Road and the fourth section of Moscow Central Ring Road.

In May we reported that Russia's Stroygazconsulting achieved commercial close for the construction of the first section of the Moscow Central Ring Road PPP project and Russia's Ministry of Transport selected the Highway Two Capitals consortium as preferred bidder to develop the 543 km - 684 km section of Moscow - St. Petersburg toll road.



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