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20 April 2016

Avtodor and the FCPF will hold a road show project “Europe - Western China” in Shanghai

On April 21-22, 2016, in Shanghai (China) Avtodor State Company and the Federal Center for Project Finance (VEB Group) will hold a preliminary road show on the project for the creation of the International Transport Route “Europe - Western China”. Potential investors will see the organizational chart of the project implementation, its main financial and economic indicators and the technical characteristics of the corridor sectors in the areas where the route will be located.

During the road show the terms of participation of investors in the project will be updated in order to to generate the report for the Government of the Russian Federation, which will decide on the further implementation of the project.

The project for the creation of the International Transport Route “Europe - Western China” is one of the key projects as part of the large-scale mega-project “Silk Road Economic Belt”, whose construction was initiated by the Chairman of the People's Republic of China Xi Jinping and supported by the President of the Russian Federation V. Putin. The creation of the route “Europe - Western China” is provided for by the basic program documents for the development of transport complex of the country: the Transport Strategy of the Russian Federation for the period up to 2030 and the Federal Target Program “Development of Transport System of Russia (2010-2020)”.

Avtodor State Company in cooperation with the Ministry of Transport of Russia and in accordance with the decisions of the Government of the Russian Federation is actively working on the practical implementation of the Russian part of the route construction. The complex of preliminary works on the formation of the route on the territory of the Russian Federation is carried out for Avtodor SC by the Federal Center for Project Finance. To date, the FCPF has performed works on transport modeling with traffic forecasting, evaluation of the project impact on the socio-economic development indicators at the regional and federal levels, and has prepared a preliminary financial model.

The international route “Europe - Western China” is a large-scale comprehensive investment project covering the territories of Russia, Kazakhstan and China. The total length of the route St. Petersburg - Moscow - Kazan - Orenburg - Aktobe - Kyzylorda - Shymkent - Almaty - Urumqi - Lanzhou - Zhengzhou - Lianyungang is more than 8,000 km. 2,787 km of them will be located on the territory of the Republic of Kazakhstan, 3,181 km - on the territory of China and 2,192 km - on the territory of Russia, of which 1,482 km of roads will be newly constructed from the Moscow region to Kazakhstan. The implementation of this international infrastructure project is a strategically important task for all the participating countries.

The route will bypass the big cities, which will provide the high-speed mode necessary for the transit corridor and will also result in savings at the stage of updating and transfer of communications. Entrances to the major cities will be provided with the current road network of the regions, and can also be built by them as part of independent road construction projects.

As part of the road show, the presentation of the regions of location of the route will be attended by Chairman of the State Committee of the Republic of Bashkortostan for Transport and Road Management Ilias Munirov, Deputy Minister of Transport and Roads of the Republic of Tatarstan Airat Usmanov, and Minister for Economic Development, Industrial Policy and Trade of the Orenburg region Natalia Bezborodova.

As part of the road show meetings are scheduled with leading Chinese banks, funds, financial institutions and investors to search for potential strategic partners interested in joint realization of the project of construction of international route “Europe - Western China”. Representatives of the largest Chinese construction companies are registered as participants - China Communications Construction Company (CCCC), Civil Engineering Contion Corporation (SSESS), China Road & Bridge Corporation (CRBC), the investment banking sector of China, including China Development Bank, Export-Import Bank of China, China International Trust and Investment Corporation (CITIC), Industrial and Commercial Bank of China (ICBC) and representatives of New Development Bank.