Step forward for Russian road project

24 July 2015

The financing and construction contract for sections 7 and 8 of the Moscow to St Petersburg motorway in Russia have been finalised by Two Capitals Highway, the concession company comprising Vinci Concessions (40%) and VTB Group (60%).

Investment during the construction period will amount to RUB97.8 billion (€1.6 billion), and the Russian Federation will finance 75% of the cost of construction. The works, with a value of €1.1 billion, will be carried out by the ICA consortium – a joint venture between the Turkish Ictas and the Italian Astaldi construction companies.

In 2014, Two Capitals Highway signed a public-private partnership contract with the Russian Federation, represented by Avtodor (the state company that operates Russia’s motorways). The 27-year contract – three years of construction and 24 years of operation – covers financing, design, construction, operation and maintenance of a 138km toll motorway starting at the Saint Petersburg ring road.

The private non-recourse financing amounts to RUB23.2 billion (nearly €400 million). Vinci said the concession company raised the entire debt through a bank loan from VTB Bank and project bonds.

A company made up of VTB Group (55%) and Vinci Highways (45%) will operate and maintain the infrastructure. Major upkeep and repair works will remain the responsibility of the concession company.

STAY CONNECTED

Receive the information you need when you need it through our world-leading magazines, newsletters and daily briefings.

Sign up

CONNECT WITH THE TEAM
Andy Brown Editor, Editorial, UK - Wadhurst Tel: +44 (0) 1892 786224 E-mail: [email protected]
Neil Gerrard Senior Editor, Editorial, UK - Wadhurst Tel: +44 (0) 7355 092 771 E-mail: [email protected]
Catrin Jones Deputy Editor, Editorial, UK – Wadhurst Tel: +44 (0) 791 2298 133 E-mail: [email protected]
Eleanor Shefford Brand Manager Tel: +44 (0) 1892 786 236 E-mail: [email protected]