RDIF, Macquarie Team up for Russian Road

Infrastructure Investor, 03.09.2013

The $10 billion Russian Direct Investment Fund (RDIF) is part of a consortium that has submitted an application to Avtodor SC – the Russian Highways state company – to take part in a tender for the construction of part of Russia’s M11 toll road.

The consortium also includes: Macquarie Russia and CIS Infrastructure Fund, a $630 million fund managed by Macquarie Infrastructure and Real Assets, the world’s largest infrastructure manager; Lider CJSC, a Russian asset management company; and Gazprombank, the Russian bank.

The M11 highway will run parallel to the existing M10, and is expected to significantly increase the speed of traffic between Russia’s major cities.

The initial cost of the project is R83.1 billion (?1.9 billion; $2.5 billion), with 25 percent of this amount to be financed by private investors. Construction of the road is expected to complete in 2017.

The winning consortium will be responsible for the financing, building and operation of a section of the M11 which is adjacent to the ring road around St Petersburg. The section will have four to six lanes of traffic and a capacity of more than 20,000 vehicles per day.

RDIF, which was established by the Russian government in June 2011, has this year announced a number of strategic partnerships with the likes of Japan Bank for International Cooperation, New York-listed technology giant GE and Abu Dhabi-based developer Mubadala.

Since first investing in 1996, Macquarie has accumulated a portfolio of 26 toll roads, bridges and tunnels across four continents, used by 1.2 million vehicles per day.