Moscow announces toll road tender

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Moscow announces toll road tender

The Moscow City Government has announced that it plans to start a tender process to build and operate a four-lane toll road from the business center Moscow City to the Moscow Ring Road and meet the M1 toll road bypassing Odintsovo.

The project cost is estimated at R60 billion (US$1.66 million), R40 billion will be used to finance the construction and the remaining R20 billion associated with the city's cost of purchasing land to rent.

Construction is anticipated to take five to seven years. The city's private partner would receive a 40 year operating concession. The investor will be able to set the road's fare, though within limits prescribed by Moscow authorities.

The city's head of construction Marat Khusnullin estimated that the road would have a throughput of 40,000 automobiles a day.

This announcement comes after the announcement of a U$190 million overspend revealed on the first public-private-partnership (PPP) project in Russia,  the km 258 - km 334 (Vyshny Volochek Bypass) segment of the Moscow - Saint Petersburg Highway (M11). This fact raised doubts about the good use of the public-private partnership model.

Mostotrest, the company that will run the road, won the right to build the the section in a 2011 tender in which it was the only participant.

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