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15 April 2016

Yugo-Vostochnaya Magistral, LLC has made a tender bid for the construction and following operation of start-up complex of the Forth Central Ring Road

On April 15 at the meeting of the Committee of the open tender for the right to enter into a concession agreement for the construction, maintenance, repair and overhaul of the Central Ring Road, Start-up Complex No. 4, the opening of envelopes with tender bids took place.

By the end of the deadline for the submission of bids, a bid was received from Yugo-Vostochnaya Magistral, LLC (Glavnaya Doroga, OJSC of Lider Managing Company). The financial partner of YVM, LLC is the Russian Direct Investment Fund in cooperation with the leading sovereign funds of the Middle East.

The following numbers were indicated in the tender terms:

Capital grant: 49,686,000,000 RUB inclusive of VAT as per the prices of the corresponding period;

Operation payment: 20,721,000,000 RUB exclusive of VAT for the entire validity period of the concession agreement as per the prices of the 1st quarter of 2014.

Investment payment: 58,569,000,000 RUB exclusive of VAT for the entire validity period of the concession agreement as per the prices of the corresponding period.

Maximum index value:   1.08.

Due to the fact that less than two tender bids were received, in accordance with part 7 Article 32 of the Federal law No 115-FZ “On Concession Agreements”, the Tender Committee has decided to present the only received offer for the consideration of the concessor represented by Avtodor State Company. According to the concessor’s decision, in case only one tender bid is submitted the tender is declared invalid. The tender bid shall be considered within 30 days after the tender is declared invalid. In case the tender bid meets the tender documentation requirements, the agreement shall be concluded in accordance with the tender bid terms within the period stated by tender documentation.

Avtodor Sate Company announced the tender for the right to enter into the concession agreement for the financing, construction and operation on a toll basis of the Start-up Complex No. 4 of the Central Ring Road 4 on August 29, 2014. In November 2014, five offers were submitted to the tender committee: from Yugo-Vostochnaya Magistral, LLC, Bolshoe Koltso Stolitsy,LLC, Invest Finance Plus, LLC, Avtodorozhnaya Stroitelnaya Korporatsiya, LLC (Road Construction Corporation) and Koltsevye Magistrali Stolitsy, LLC (Moscow Ring Roads). All the companies were approved for the tender participation. In January 2015, after profound changes in the economic situation, the participants started the open discussions with representatives of Avtodor State Company and the Ministry of Transport concerning the 3rd and 4th start-up complexes of the Central Ring Road. As a result of the discussion, the Government of the Russian Federation made a decision to correct the project implementation terms, and Avtodor State Company made corresponding amendments in the tender documentation. The terms concerning the period for the submission of the tender bids within the tender procedures were corrected as part of these amendments. 

The Start-up Complex of the Forth Central Ring Road will be located in the south-west of the Moscow region from the junction with M-7 Volga highway (zero kilometer of highway A-113 CRR) to the junction with M-4 Don highway. This section will go through Noginsky, Pavlo-Posadsky, Voskresensky and Ramesky districts, Elektrostal and Domodedovo.

The forecasted traffic volume for 2030 is 40,3 thousand vehicles per day*. This area will correspond to IA category, which means the average expected speed of 140 km/hour. The first stage of construction will provide 4 traffic lanes (two in each direction).

During the construction of this section 17 bridges and wildlife crossings, 40 crossovers and 9 overpasses will be built. The project also provides for the construction of 6 traffic junctions on different levels with M-7 Volga, MMK, Yegorievskoe highway, MMK-Chechevilovo-MBK road, M-5 Ural highway, Vostryakovo-Obrazcovo (exit to the Domodedovo Airport), and M-4 Don highway).

* As part of the 2nd stage of construction, the project development provides for the increase in the number of main traffic lanes to 6 with road surface width 2x11.25 m.