Only one bidder for Moscow Ring Road concession

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Only one bidder for Moscow Ring Road concession

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The Russian road agency, Avtodor, has recently published that it has received only one bid in the tender process for the third section of the Central Ring Road (CRR) project from the consortium Avtodorozhnaya Stroitelnaya Korporatsiya, LLC. The bid was opened on April 11, during the meeting of the tender commission.

The consortium of Avtodorozhnaya Stroitelnaya Korporatsiya, LLC includes DSK Avtoban, OJSC and Spanish company Sacyr Concession. The Russian Direct Investment Fund acts as a financial partner and supports the consortium together with the leading sovereign funds of the Middle East.

According to the tender criteria, Avtodorozhnaya Stroitelnaya Korporatsiya proposed the following conditions in its bid:

  • Capital grant: 42,203,799,200 rubles​ (US$642 million), VAT included
  • Maintenance payment: 22,520,301,323 rubles (US$342.5 million) for the entire validity period of the agreement, VAT excluded
  • Investment payment: 67,640,066,572 rubles​ (US$1.023 billion), VAT excluded
  • Maximum value of the index: 1.08

Avtodor launched the tender processes to develop the third and the fourth sections of Moscow Central Ring Road (CCR) project on August 29, 2014.

In October 2014, the tender commission received five bids from Severo-Vostochnaya Magistral, SOK 24 Russia, Invest Finans, Avtodorozhnaya Stroitelnaya Korporatsiya and Koltsevaya Magistral for the third section. 

In January 2015, due to the changed macroeconomic conditions, the Ministry of Transport of the Russian Federation decided to postpone the bidding deadline for both tender procedures.

Avtodor said in a communication released this week that the tender process was declared void because there were less than two bids. However, in the same press release, they stated that tender commission has decided to deliver the submitted bid for the approval of the concession grantor, Avtodor.

The third section of the Central Ring Road (CRR) project will involve the construction, maintenance, repair and overhaul of 105.3 kilometers, which will go in parallel to the Small Concrete Ring A-107 in the North-East of the Moscow region. The project will also join the new express highway Moscow-Saint Petersburg with M-7 Volga highway. 

The highway will have four traffic lanes and there will be 55 bridgeworks (including 20 bridges and 35 flyovers) and 4 multilevel crossings. The traffic volume expected for 2030 is 43,500 cars per day. Additionally, the facility will be operated on a toll basis.

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