China has agreed to provide a RUB400 billion (US$6.1 billion) loan for the Moscow - Kazan high speed line PPP project during the sixth meeting of the Russian-Chinese working group on high-speed railways cooperation, which was held in the Chinese capital Beijing from 26 to 27 April 2016.

According to the agreement, the Chinese will provide debt financing equivalent to RUB250 billion for the Moscow ­- Nizhny Novgorod stretch and the equivalent of RUB150 billion for the Nizhny Novgorod -­ Kazan stretch. The parties also discussed the possibility of financing the project in US dollars and yuan.

In addition, the Chinese side will provide equity financing for the project on the Moscow ­ Nizhny - Novgorod stretch amounting to the equivalent of RUB52 billion in US dollars (US$790 million), as well as an additional amount of US$1 billion for the Nizhny - Novgorod -­ Kazan stretch.

It is expected that within the framework of the project, a special purpose vehicle (SPV) will be set up as the concessionaire. Its task will be to conclude and execute the concession agreement on the construction of the project.

The project involves 770 km high speed line Moscow - Vladimir - Nizhny Novgorod - Kazan. The line was divided into four segments, each planned to be built simultaneously. The 770 km line will pass through 7 subjects of Russia with a total population of over 25 million people. The project includes 15 stops, including Moscow, Vladimir, Nizhny Novgorod, Cheboksary and Kazan. The line will be the largest infrastructure project in Russia today.

The total project investment is estimated at about RUB1 trillion (US$16.4 billion).