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DSK Avtoban​ and the Russian Direct Investment Fund (RDIF) have signed a concession agreement with Avtodor, Russia’s state highways agency, for the financing, construction and operation of section four of Moscow's central ring road (CCR).

As we reported in September 2014, Avtodor launched two tender processes to develop the third and fourth section of Moscow CCR project. Avtodor tendered the third and fourth sections through public-private partnership (PPP) contracts with a total of 51% of the third stage and 45% of the fourth stage being developed through private investment funding.

The fourth project involves the development of the south-east section. The four lanes road will have a total length of 96.6 km. The project will start at the intersection of the CRR with the Ðœ-7 Volga road and it will end at the intersection with the M-4 Don highway.

The total investment is estimated at RUB63.6 billion (US$1.7 billion).

The Moscow CCR is divided in five different contracts. DSK Avtoban, with OJSC and Spanish company Sacyr Concession, also signed a concession agreement for the development of the section three. DSK Avtoban reached financial close on the project last March. Gazprombank (GPB), the third largest bank in the country, has signed a RUB35.6 billion (US$600 million) loan to finance to project.

RDIF is a Sovereign Fund of the Russian Federation established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. Recently, RDIF and GAZFOND, Russia's largest private pension fund, announced the establishment of the United Transport Concession Holding. The partnership will invest in the construction and operation of roads, railways, city transport and PPP projects in the Russian Federation, jointly with leading international funds.