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30 May 2011

Two bids from Kapsch and Vinci subsidiaries received at open tender for O&M contract for M4 Don highway part

Subsidiaries of Kapsch and Vinci companies are bidding for the O&M contract for the second part of the federal M4 Don highway (225.6 км – 633 км).

On May 27 the tender commission of Avtodor State Company opened the bids at the open international tender for long-term O&M contract to maintain, repair and operate toll part of the M-4 Don highway from 225.6 km to 633.0 km.

Two bids were submitted to the tender commission. The first one came from Unified Toll Systems subsidiary of Mostotrest and Kapsch TrafficCom Russia. The second bidder is SOK 24 SAS, a subsidiary of Vinci Concessions. The bids will be considered at the preliminary selection round in not more than 25 days since the bids were opened. The preliminary round will determine the bidders in the main round.

    Tender documents contain the following qualification requirements to the bidders:
  • Not less than ten years of successful experience in managing toll roads and toll sections of highways with overall distance of not less than one thousand kilometers at the moment of the bid submission;
  • Management of common-use toll road network in the past five years with a distance not less than 750 kilometers in each calendar year;
  • Overall toll collection at the managed network of toll roads in the past calendar year shall not be less than 10 billion rubles (foreign currency shall be re-calculated in rubles by the exchange rate of the Central Bank of Russia).
At the second round the bidders have to submit tender offers in compliance with project documents for the part of the highway and draft O&M contract. Selection criteria include the basic cost factor of the works stipulated by the O&M contract.

The contract shall contain elements of provisions for toll road operation, maintenance and repairs, construction and assembly of toll-collection points and computerized traffic management system, as well as elements of investment commitments.

The term of the O&M contract is ten years.

The tender aims at introducing advanced international experience, best technologies and practices of toll road management on the territory of our country, further development of the Russian road network, and provision of world-standard services to the users of toll roads.

The O&M contract shall encourage maximum possible integration into the existing systems of toll roads in Europe by hiring a leading international toll road operator for the management of the roads of the Avtodor State Company.

Background:
The O&M contract is a new form of road operation and maintenance for Russia. In international practice the so-called O&M (operation and maintenance) contracts mostly correspond to the subject of the contract. They differ from concession agreements by the absence of design and construction stages. Such form of the contract was chosen for the given part of M-4 Don highway due to the high level of readiness.