Press room


1 December 2016

The State Company Avtodor is considering the possibility of implementing its projects using a private initiative mechanism

The State Company Avtodor is considering the possibility of implementing its projects through a private initiative mechanism. This was declared by Aleksandr Nosov, Deputy Chairman of the Board of the State Company Avtodor for Investment Policy and Strategic Planning at the 10th International Forum and Exhibition "Transport Week" during the round table "The market of PPP in the road sector: challenges and prospects."

"We favor private initiative. This instrument will largely expand the possibilities of public-private partnership. As regards our company, we are very interested in the development of this mechanism. We are optimizing this format, and we are quite willing to work with all market participants who are potentially interested in our various projects," Aleksandr Nosov said.

According to Mr. Nosov, based on the private initiative, the projects, in particular, on the highways M-1 Belarus and M-3 Ukraine, as well as bypass of Noginsk can be implemented.

"Any of these projects can be implemented in the format of private initiative. This is the classic situation where the projects have been postponed to a later date, and the market is able to offer us an earlier launch of these projects. We are ready, we have already held consultations with investment companies, and continue this work," Deputy Chairman of the Board explained.

Also, he stressed that the pure private initiative is unlikely to be implemented, and the support of the State Company would still be necessary.

"A pure private initiative, probably, will not work out. It still requires further consultation and preliminary negotiations between the consignor and the proposed concessionaire. This allows eliminating very many questions and providing the investor with representations and warranties that he will not waste money on the project feasibility study and structuring. This allows improving the quality of the project and eliminating those possible future comments by the public authorities which could occur if there was no prior consultation with the state party," Aleksandr Nosov said.

"I hope that next year we will be able to announce some real private initiatives, but in the part of our company support format, to submit the same to the Ministry of Transport and the Government of the Russian Federation for consideration," Aleksandr Nosov concluded.

The State Company Avtodor was established in 2009. The company’s goal is to develop a network of high-speed toll highways, attract off-budget investments, and develop road service facilities. The State Company Avtodor is the trust manager of highways M-1 Belarus, M-4 Don, M-3 Ukraine and a new high-speed highway M-11 Moscow - St. Petersburg. The State Company carries out their comprehensive reconstruction. Avtodor is the responsible constructor of the Central Ring Road (CRR) in Moscow and Moscow region. The State Company uses the mechanisms of public-private partnership (PPP) for the implementation of all major projects.