Avtodor launches tender for $2.6 billion PPP highway in Russia
Russian Highways (Avtodor) State Company launched yesterday an open tender for a concession agreement on financing, construction and operation of the M-11 Moscow-St Petersburg highway at the 543-684 km section. The 137.5-kilometre tolled highway will constitute part of the Moscow-St Petersburg tollway linking the country's two biggest cities.
Total construction costs amount to 84.4 billion roubles (US$2.65 billion), including VAT and excluding other related expenses at construction stage. 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 road will have the following number of lanes:- 4 lanes at the 543-646km section
- 6 lanes at the 646-684km section
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.
According to the Project Memorandum, deadline for submissions of pre-qualification documents is September 2nd, 2013.
The notice in Russian numbered 31300377356 is published on Russian State procurement website http://zakupki.gov.ru and Avtodor official website: http://www.russianhighways.ru/
The Project Memorandum can be found here: http://www.russianhighways.ru/for_investor/konkurs-na-stroitelstvo-uchastkov-dorogi-moskva-sankt-peterburg/about/Memo_Moscow-St%20Petersburg_543-684_Eng_final_06062013.pdf
