Russia's Stroygazconsulting has achieved commercial close for the construction of the first section of the Central Ring Road (TSKAD) PPP project in Moscow.

Taking part in the ceremony were members of the Russian Federation government: Deputy Prime Minister Arkady Dvorkovich and Minister of the Russian Federation Arkady Abyzov. The document was signed by Sergey Kelbakh, Chairman of the Avtodor state company Management Committee and Mikhail Yakibchuk, CEO of OOO Stroygazconsulting.

The project will be developed on a design, build, finance, operation and maintenance (DBFOM) basis. The contract agreement will be valid during a period of 23 years, four of them will be for the construction of the 49.5 km road and the remaining 19 for maintenance the project.

The total investment is estimated at RUB48.9 billion (US$1.39 billion) and the amount of annual basic operational payments is RUB5.8 billion (US$166 million).

The first section of the Central Ring Road (TSKAD), from km 96 to km 146, will run through the Domodedovo area, the Podolsk district (Moscow Region), the Troitskiy administrative area of Moscow and Naro-Fominsky district of the Moscow Region.

The four-lane road PPP project also involves the development of railway crossings and traffic interchanges. A total of four traffic interchanges, three trestles, twenty-four overpasses and 14 bridges will be constructed at this first section.

All in all the Central Ring Road is divided into five sections. Four of them are the enclosed rings which should be commissioned in 2018. Tenders for the construction of the third, fourth and fifth sections of TSKAD will be announced by the State Company Russian Highways, Avtodor, till the end of 2014.