Four bidders to compete for $2.6 billion Russian highway PPP project
Four teams have been qualified to submit final proposals for the concession project for the financing, construction and operation of the 543 km - 684 km section of Moscow - St. Petersburg toll road. Russia's Avtodor SC decided that all submitted applications comply with the tender requirements, and allowed all applicants to participate in the tender.
The four teams that submitted qualification documents were the following:
- Stolichniy Tract OJSC: a consortium of RDIF, Gazprombank and the Macquarie Group Foundation,
- Roads Construction Corporation LLC: a consortium of Sacyr Concesiones SL, Road-Building company Autobahn OJSC and Khanty-Mansiysk DorStroi OJSC
- Two Capitals Highway LLC: a consortium of Holding VTB Capital IB LLC, VINCI Concessions ServicesRussia SAS, ASTALDI SpA. and IC ICTAS INSAAT; and
- Corsan-Corviam Construccion, SA, a member of the Groupo Isolux Corsan, SA.
According to the project implementation schedule, open consultations with the applicants will be carried out within next four months. The tender results are scheduled to be summed-up on or before April 1, 2014, and the signing of the concession agreement is to take place on or before July, 1 2014.
Total construction costs amount to 84.4 billion roubles (US$2.65 billion). The concedent and the concessionaire will share construction costs in the proportion of 75 to 25 per cent, respectively. Total concessionaire's investments amount to: 24.4 billion roubles (US$768 million).
The concedent will also pay availability payments to the concessionaire during the operation of the road.
The construction of the new M-11 highway started with the sections closest to areas with the highest transport loads. As of today, construction works are underway on the 15-58km section of the road following the signing of a concession agreement in line with the Russian Federation Government Decree No. 511-r dated 24 April 2007. In late 2011, a long-term investment agreement was signed with a view to building the 258-334km road section (a bypass of the city of Vyshny Volochyok) on the basis of a life cycle contract scheme.
