RDIF invests in the reconstruction of M-4 Don highway in the Rostov – Krasnodar section
Moscow, 15 June, 2016– The Russian Direct Investment Fund (RDIF) is investing in a complex reconstruction of the federal M-4 Don highway in Russia, as part of its infrastructure partnership with Avtodor State Company. The project involves complex installation work, reconstruction, maintenance, repair, structural repair and toll operation of the M-4 Don federal highway from Moscow through Voronezh, Rostov-on-Don, Krasnodar to Novorossiysk, at Section 4, Rostov - Krasnodar (section km 1091.6 - km 1319).
The company Road Investment Company LLC, created by RDIF and Avtodor to identify and implement road improvement projects in Russia, will act as the project operator. A number of RDIF’s international partners, including leading Middle Eastern funds, will be investing in the project alongside RDIF.
Under the operator agreement until 31 December 2030, the total cost of the project, including reconstruction and improvement work, will amount to around RUB 7bn.
The project operator will:
- createthe main structural elements of the road, as well as service and maintain the condition;
- ensure that automated traffic control system is installed;
- ensure that toll collection systems are installed;
- collect toll fees at the rates approved by Avtodor State Company.
The operator will receive a fixed fee from Avtodor under the existing contract.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
"In collaboration with Avtodor we have been able to structure a project for the complex reconstruction of the 4th section of the M4 highway, and make this an attractive investment for our international partners. The experience in developing this PPP with the participation of foreign capital will be replicated across the country. This will significantly speed up the pace of road construction as well as improve the quality of Russian roads."
Sergey Kelbakh, Сhairman of the Avtodor State Company, said:
"It’s extremely difficult to attract foreign investment into infrastructure projects in Russia given the current unstable macroeconomic situation. However, the impressive track record of the Russian Direct Investment Fund gives us every confidence that with their support the project will receive foreign investments.”
Russian Direct Investment Fund (RDIF)was established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Further information can be found at rdif.ru
The reconstruction of the M-4 Don highway between km 1091 - km 1319is part of the comprehensive reconstruction of the M-4 from Moscow to Novorossiysk. In accordance with a government decision, following reconstruction, toll charges will apply to various sections of the road. Toll fees have already been introduced on seven sections (https://russianhighways.ru/for_drivers/m-4/pay_sites/). In accordance with current legislation, there will be toll-free alternatives to all of the toll routes. This is described in the relevant government decrees (http://government.ru/docs/15715/).
The Partnership between the Russian Direct Investment Fund and SC Avtodorwas signed in December, 2014. The parties have agreed to develop and implement joint transport infrastructure investment projects. The partners work together to identify and invest in projects during their initial stages under the government supervision, before attracting foreign investors.
For additional information contact:
Russian Direct Investment Fund
Director of External Communications
Tel: +7 495 644 34 14, ext. 2141
Mobile: +7 964 726 17 73
Andrew Hayes / Yulianna Vilkos
Tel: +44 (0) 20 7796 4133