The Russian Direct Investment Fund (RDIF), together with Macquarie Russia and CIS Infrastructure Fund, Lider and Gazprombank have put together a consortium to bid for the construction of the Veliky Novgorod to St. Petersburg section of the M11 toll road, according to RDIF.

According to the Moscow Times, over 70 local and international consulting, construction and financial companies expressed their interest in the project.

Russian Highways chairman Sergei Kelbakh said:

"This section of the M11 road entering St. Petersburg could be interesting for potential investors because it has a daily traffic volume of 30,000 to 35,000 cars and a high return rate on investment - higher than similar infrastructure projects in Brazil for instance."

The tender winner will be announced in April 2014 and will have three years to complete the project and then 27 years to maintain it, after which the road will be transferred to state ownership.

According to RDIF, Avtodor SC will consider applications until mid-October 2013. the deadline for submissions of applications was September 2nd.

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.

Source: RDIF