RDIF and State Company Avtodor agree to attract investors to develop joint projects in transport infrastructure
Press release, 05.12.2014
Moscow, 5 December 2014 – The Russian Direct Investment Fund (RDIF) and the State Company Russian Highways (Avtodor) have agreed to develop and implement joint transport infrastructure investments. The two parties plan to co-invest in the projects at early development stages under state control and subsequently attract leading infrastructure investors. The partnership will allow for a significant increase in new road construction in Russia.
According to the agreement, RDIF and its international partners will provide at least 25% of the equity financing for the projects along with the necessary expertise to ensure effective implementation. The partnership will focus on attracting foreign investments into joint projects through various mechanisms, including co-investment of National Wealth Fund (NWF) resources.
RDIF and Avtodor's first project could be the refurbishment of the M-4 Don Highway (1091–1319km) for subsequent operation as a toll road.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
“Demand for equity investments into state-sponsored transport projects over the next five years will exceed 200 billion roubles, which requires participation of foreign investors. This partnership will enable us to efficiently implement transport infrastructure projects, while making them considerably more attractive to RDIF’s partners. This will subsequently accelerate the rate of road construction in Russia.”
Sergei Kelbakh, Chairman of the Management Board of State Company Avtodor, said:
“Our cooperation with RDIF will provide an additional impulse to new investments into the sector and will bring on board a partner that facilitates development of a local market for investment, construction, and operation of a network of high-speed highways, which Avtodor has been developing over the last five years.”
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Russian Direct Investment Fund (RDIF) was established in June 2011 to make equity co-investments primarily in Russia alongside reputable international financial and strategic investors. Based in Moscow, RDIF’s management company is a 100% subsidiary of Vnesheconombank. Further information is available at www.rdif.ru
The State Company Russian Highways (Avtodor) was established in 2009. The mission of State Company Avtodor is to form and develop Russia’s national high-speed highway network. The State Company Avtodor has refurbished and currently operates 450km of M-1 “Belarus” highway, 1,517km of M-4 “Don” highway, and 432km of M-3 “Ukraine” highway. Avtodor represents the Government of Russia in the tenders for construction of Moscow-St. Petersburg high-speed route and Central Ring Road (CKAD) in the Moscow region. The company utilizes public-private partnerships (PPP) for all of its major projects. Further information is available at www.russianhighways.ru
Russian Direct Investment Fund
Director, Media Relations Department
Tel: +7 495 644 34 14, ext. 2141
Mobile: +7 964 726 17 73
Andrew Hayes / Maria Ignatova / Elena Garside
Tel: +44 (0) 20 7796 4133
Head of the Press-Office
State Company Avtodor
Tel: +7 (495) 580-98-42
Mobile: +7 (916) 397-41-51