The auditors found a 40% increase over estimates for the main construction of the Russian Railways

Deloitte has audited the construction of model objects in the framework of modernization of the Baikal-Amur mainline and TRANS-Siberian Railways (more about contractors and beneficiaries “construction of the century” with a total value of more than 1 trillion rubles, see the inquiry). Examining estimates of second tracks, sidings and inserts eight objects worth 19.2 billion roubles, the auditors concluded that they can be built for 10.7 billion rubles, that is, at 8.5 billion, or 45%, cheaper.

Five other objects in the BAM and the Transsib was analysed by experts of JSC “Kim and partners”. According to them, at a cost of 20.6 billion rubles, you can save 1.15 billion, or 6%.

Large-scale railway construction in the East is not the first time falls under the audit. In autumn 2013 the whole project was divided into three parts and given to assess leading companies — PricewaterhouseCoopers, Ernst & Young, Deloitte. The results have never been published, but, as it turned out , the Russian government, after reviewing the results of the audit, decided not to release a project out of control. The building broke many of the model objects — the sidings, stations, bridges, etc., estimate each decided to test separately.

The curator of the giant project is the Vice Prime Minister Arkady Dvorkovich, and the results of audit of separate objects are discussed at the meetings with the evaluators, representatives of Russian Railways, members of Open government, industry experts and shippers. Another meeting was held on February 17, 2016. The staff of the Railways is only partially acknowledged comments Deloitte. So, the Deputy chief of Department of capital construction Russian Railways Andrey Panenkov announced the reduction of the estimates by 15-16% during the laying of 45 km of the second track on two stretches of the BAM: kunerma — Delicija and Ulkan — Umbella. At the same time, Deloitte pointed to the possibility of saving these objects to 35% and 55% respectively.

In their report, Deloitte noted that the cost of works and services (especially materials and equipment) in 3-25% higher than the market counterparts, the crushed stone will be imported from quarries more than 3-4 thousand km, while the nearest are in the 150-600 km in addition, the auditors wondered why spend money for disposal of cut soil and at the same time to buy a new one for the construction of the embankment, to use the new rails at intermediate packing and working to bring the aircraft from Belgorod and not by train from Irkutsk.

At Deloitte questioned the feasibility of the whole project of modernization of BAM West (from station Taishet to Tynda). Sources of additional cargo that will go on the highway after the reconstruction, only two of the Kuzbass coal basin and Elegest coal Deposit (ALSO owned by Ruslan Baisarov). However, Elegest Deposit, say the auditors, it is unlikely to be in operation by 2020, as the project has had difficulty securing money from the NWF.

Thus, the additional amount will be able to give the Kuzbass. However, the transportation of coal from this region, underlines Deloitte, is unprofitable for the Railways. Tariffs for transportation of ton of coal is 20 kopecks per tonne-kilometer (for example, for grain twice), the transport of one tonne generates a loss for the Russian Railways in the amount of RUR 121

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The Minister for Open government Mikhail Abyzov, in conversation with has confirmed that the project really can not take the previously planned cargo base. The reasons as to the problems of Elegest and low world coal prices and problems with debt financing is a potential shippers postpone previously scheduled projects.

“We believe that BAM and Transsib, with all the challenges of market conditions and the tension of budget — the project that you want to do, because it provides new strategic opportunities for the export of Russian goods and the use of Russian infrastructure as a transport corridor Europe — Asia,” added the official.

The modernization project of BAM and Transsib a cost of 562 billion rubles to be implemented until 2019, reported the press service of the RZD. Thanks to the optimization measures have succeeded in reducing the estimates for 8.3 billion rubles.

However, 562 billion is not the final sum, because it doesn’t include the strengthening of power supply of the BAM and TRANS-Siberian Railways, construction of additional branches and other activities. Detailed cost estimates for the project are estimated to exceed 1 trillion rubles This is the most expensive construction project in the history of Railways, the start was given under the previous President Vladimir Yakunin. And the investigation showed that main contractors BAM can be associated with the ex-head of state monopoly.