Application to the fourth section of the CRR filed the structure of VEB and Gazprom

The road to “Leader

The competition for the construction of the fourth section of the Central ring road around Moscow (CRR) is applying only the structure of the criminal code “Leader” — “Southeast pipeline”, said the state company “Avtodor”. She will review the application within 30 days and will enter into an agreement with the “southeastern route” if it finds any contradictions with the requirements of the tender documentation.

Shareholders of “Leader” — VEB, Gazprom and Gazfond and Gazprombank, are listed on the website of the management company (not disclosed). “Leader” manages assets of the largest pension funds, including “Gazfond”, “well-being” and NPF electric Power industry, and insurance companies.

“Leader” has long invested in concession projects and infrastructure. For example, “Main road” (“daughter” of “Leader”) in 2009, signed with Avtodor Russia’s first concession agreement for the construction and operation of toll road — bypass Odintsovo, Minsk highway.

The length of the fourth section of the CRR — 96.5 km, the value of 78.5 billion rubles of Financial partners of the consortium are the Russian direct investment Fund (RDIF) together with the sovereign funds of the Middle East, said in a press release of “Ukravtodor”. A private investor will invest in the fourth section of the CRR 28.8 billion rubles, the state’s investment will amount to RUR 49.7 billion. In its tender offer “Leader” has reduced the amount of capital grant (the state share) of 310 thousand rubles.

Managing Director UK “the Leader” Sergey Kerber did not answer the questions . The representative of the FUND confirmed the Fund’s participation in the project, but details not revealed.

What will be the fourth section of the CRR

The route will pass through the South-East of Moscow region — from the intersection with highway M-7 “Volga” (zero kilometer of the highway A-113 Central ring road) to the intersection with highway M-4 “don”. The projected traffic volume on the road by 2030 of 40.3 thousand vehicles per day. The design speed is 140 km/h. at First the road will be four-lane (two lanes in each direction), but in the long term “Avtodor” plans to increase the number of lanes to six.

The fourth section envisages the construction of seventeen bridges and alduchov, forty overpasses and nine flyovers, six interchanges.

The Central ring road to be built by the end of 2018. The cost of construction, according to preliminary estimates, will amount to about 300 billion rubles, including 150 billion rubles allocated from the national welfare Fund (NWF). The first lot — the first and fifth sections of the Central ring — played in 2014. Their price is 48.9 bn and 42.2 billion rubles respectively.

The Problem Of “Ukravtodor”

“Avtodor” could not play the third and fourth sections of the road from 2014. The competition for the fourth phase was announced in August 2014. However, after the weakening of the ruble and a sharp increase in the key rate in state-owned companies began to have problems with investors. In 2015 “Avtodor” held consultations with appropriately qualified parties, but the timing of competitions is constantly shifting. In November 2015 issued a decree of the government of the changed funding scheme of the project. The government has committed itself to partially offset the costs to the concessionaire with inflation above 8%. If inflation is higher than 15%, may be revised, the basic parameters of the contract.

For the construction of the third and fourth sections of the route from mid-2015, claimed four of the consortium — “South Eastern railway”, “JUICE rush 24” (VTB group and the French Vinci), “invest Finance” (the Gazprombank and OAO Stroytransgaz) and ASC (“DSK Autobahn” Alexey Andreev and Spanish Sacyr Concession) . In January wrote that investors lose interest in the CRR because it does not believe that costs will be recovered. Two people in the consortia argued that the cost of the third phase may be higher than specified in the tender documentation for 10 billion rubles of Potential concessionaires is also not satisfied that “Avtodor” does not assume fully the obligations to provide land prior to construction. Interlocutors in all four consortia said then that a final decision about the participation in the contest.

This week “Avtodor” held a competition third section of the CRR. Its length is 105,3 km, and the cost is 75 billion rubles For the construction of the road was also only one bidder — a consortium “the Highway” (100% controlled Alexey Andreev) and the Spanish Sacyr Concession “Road construction Corporation” (ASC) . The share of private funding in this project is 44%, i.e. ASC need to attract 33,1 billion rubles, the Deputy Director General for financial development “Autobahn” Denis Anisimov said that the company does not expect that its application would be the one. He added that the consortium is ready to build the object “in a sentence for money” and expects that “Avtodor” will sign a concession agreement with the ASC. According to Anisimova, his company had determined to participate in the competition for the construction of the fourth phase, but the night before the day of completion of enrollment, the Board of Directors of the ASC decided to only work on the third part of the track.

The representative of “Stroytransgaz” confirmed that the company decided not to participate in contests, but refused to explain the reasons. The representative of “VTB Capital” refused to comment.

Although the third phase is longer and cheaper fourth, we cannot say that “Leader” may receive more favorable contract than the ASC, said the expert of the “neo Centre” Eugene Mazur. “In the fourth plot more structures and two additional interchanges, which increases the construction costs,” sums up the expert.