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29 June 2018

Concession agreement signed to finance the third start-up facility of the Central Ring Road (CRR)

The State Company Avtodor and “Avtodorozhnaya Stroitelnaya Korporatsiya” (Road Construction Corporation) LLC signed a concession agreement with Gazprombank, Sberbank and Eurasian Development Bank (EADB). The agreement defines interaction of the parties in loan-based financing of the construction project “Central Ring Road of Moscow Region. Start-Up Facility (Construction Phase) No. 3”.

The State Company Avtodor will act as a concedent and “Avtodorozhnaya Stroitelnaya Korporatsiya” LLC (ASK LLC) as a concessioner. The banks (Gazprombank, Sberbank and EADB) will act as senior and unsubordinated creditors.

The loan facility will be provided by the banks to ASK LLC on a project-financing basis for the construction of the 105 km toll road section of the Central Ring Road (CRR) – the third start-up facility. The project will be implemented under the concession agreement between ASK LLC and the State Company Avtodor signed in 2016. The highway is expected to be put in operation in 2019.

A 75% stake in ASK LLC is owned by Avtoban Group of Companies, one of the largest federal players in the road construction market, while 25% is owned by EADB.

The CRR construction is the first infrastructure megaproject partially financed by the National Wealth Fund (NWF). The total cost of the project is estimated at more than 300 billion rubles, 150 billion of which will be financed at the NWF’s expense.

The 3rd start-up facility of the CRR will pass in parallel with the Small Concrete Ring. А-107 in the North-East of the Moscow Region to connect the new Moscow - St. Petersburg Highway and the M-7 Volga Highway. The highway will have four lanes with an estimated speed of 140 km/h. The road section will be equipped with 69 bridge facilities (17 bridges, 5 wildlife crossings, 3 pedestrian crossings, and 44 flyovers, including at four road junctions).