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9 July 2015

In Kazakhstan, the delegation of the State Company Avtodor discusses the implementation of the project Europe - West China

During a working visit to the Republic of Kazakhstan, Mr. Innokentii Alafinov, First Deputy Chairman of the Board on Finance and Investment Issues, together with Mr. Sergey Domnikov, Minister of Construction, Housing, Utility and Road Services of the Orenburd Region, holds a number of meetings dedicated to the current status and the life of the project as to the development of International Transport Corridor Europe - West China.

Subsequently, on 10 July, Innokentii Alafinov will hold a meeting in Orenburg, where the delegation of Avtodor, together with the representatives of business community, will discuss the issues of maximizing the effect of the Project implementation.

It bears reminding that in June, on the platform of of IX St. Petersburg International Economic Forum, the State Company Avtodor, Federal Center for Project Financing (FCPF, VEB Group), the Republics of Tatarstan and Bashkortostan, as well as the Orenburg Region, signed an agreement for collaboration and information interchange within the framework of developing International Transportation Corridor Europe - West China within the territory of the Russian Federation.

The completion of ITC  Europe -- West China will ensure the development of manifold ties of European nations with the Russian Federation, Kazakhstan, and other countries of Central and South-East Asia. The new motor route will make it possible to intensify efforts in utilizing transit communications of the Russian Federation with the purpose of expanding international traffic.

In 2015, the State Company Avtodor commences comprehensive development of  investment project for the construction of ITC Europe -- West China within the territory of the Russian Federation. The total length of the route within the territory of the Russian Federation will amount to about 2.3 thousand kilometers.

The project is divided into two stages. The first stage will include the new M-11 Moscow -- St Petersburg Highway, with the total length of 567 kilometers (excluding Bysinovskaya transport junction, Moscow Ring Road junction, approach to Zelenograd, and km 15 -- km 58 section) and Central Ring Road (third Launch Complex, with the total length of 105.3 kilometers). In accordance with Long-Term Program of Activities of the State Company Avtodor (2010-2020) as amended by the Government of the Russian Federation on 23 May 2014, the construction activities on the above-mentioned highways are to be completed in 2018.

The second stage will include the section from CRR through the new Moscow -- Nizhny Novgorod -- Kazan Highway, and thereafter also the section via newly-built motor roads within the Republic of Tatarstan, the Republic of Bashkortostan, and the Orenburg Region. In particular, it will include Shaly-Bavly Highway (the Republic of Tatarstan), the highways Bavly -- Kumertau (the Republic of Bashkortostan), and Kumertau -- Sagarchin - the border of the Republic of Kazakhstan. The highway will  be further linked with the next section of ITC in Kazakhstan.

At present, the State Company Avtodor makes preparations to perform a complex of front-end activities (including the development of transportation simulation and financial feasibility study) within the framework of the project ITC Europe -- West China  in the territory of the Russian Federation. The front-end development will be performed by Federal Center for Project financing, the subsidiary of Vnesheconombank. The activities are scheduled to be completed no later than in 2016.

The project Europe -- West China will be implemented based on the principles of Public Private Partnership (PPP), it will include several toll highway sections, and will possibly involve several independent companies working concurrently, which will act as the constructors and the operators of the Corridor. To finance the project, it is planned to raise budget funds at various levels, as well as to attract private Russian and foreign investments.