RDIF, AVTOBAN and Makyol announce consortium to construct fourth section of Central Ring Road
Press release, 15.02.2018
Sochi, February 15, 2018 - Russian Direct Investment Fund (RDIF), AVTOBAN, a road building company, and Makyol, a Turkish construction company, announced a joint agreement today during the Russian Investment Forum, to establish a consortium, which will oversee the implementation of a concession agreement to build and operate the fourth section of the Moscow Central Ring Road.
The fourth and final section of the Central Ring Road is 96.5 km long. Under the terms of the concession agreement, the cost of construction is 85.4 billion rubles, of which the concessionaire will provide 49.7 billion rubles and private investors will provide 35.7 billion rubles.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
“The agreement on the fourth section of the Central Ring Road will enable the implementation of one of Russia’s most significant road and infrastructure projects. The project highlights how PPP mechanisms can generate investment interest in the sector. We have seen increased interest in transport infrastructure projects from our foreign partners and plan to increase the percentage of these investments in our portfolio.”
Denis Anisimov, Deputy director general for financial development of AVTOBAN, said:
“Successful Consortium formation is the next stage of the Project implementation, designed for 30 years. The joint team work of the Project participants will undoubtedly allow to solve all the challenges of the investment stage.”
Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund 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 www.rdif.ru
AVTOBAN Road-Building Company is one of the three largest Russian road construction companies, with the total portfolio including PPP contracts exceeding 250 billion rubles. The company provides a full range of services in the road and industrial and civil construction, engineering and design and survey services. JSC DSK AVTOBAN participates in the development of the PPP market at the federal and regional levels, as an investor and operator in the construction and maintenance of toll roads. GC "Avtoban" is one of the largest general contractors of the Federal Road Agency Rosavtodor, the State Company "Avtodor", with presence in 15 entities in five federal districts of the Russian Federation. The largest projects include new construction and reconstruction on the routes M1 Belarus, M3 Ukraine, M4 Don, M5 Ural, M7 Volga, M7 Kholmogory, M11 Moscow-Saint Petersburg. GC «AVTOBAN» was assigned the ruA- rating by the RAEX agency (Expert RA) , as well as the B1 rating by Moody's. As of 2018, the number of employees totalled over 5,000, and the park of road-building equipment exceeded 1,200 units.
Makyol is Turkey's leading contractor for the construction of highways, subways and tunnels. As of 2018, the total volume of contracts in the Makyol portfolio of projects is more than USD 5.3 billion. At the end of 2016, consolidated total revenue of Makyol amounted to USD 1.1 billion, including income from the objects of concessions. Revenue for 2017 is expected at USD1.2 billion. Makyol is the main shareholder of the largest concession project in the history of Turkey’s transport sector, the 423-kilometer Gebze-Izmir highway, which includes the construction of the world's fourth largest suspension bridge, with a total investment of USD7.3 billion. The completed sections of the road have been put into operation. The company is a shareholder of BAKAD (Great Almaty Ring Road), the first concession project in Kazakhstan, with a total investment of about USD 800 million. The concession agreement was signed on February 7, 2018. BAKAD is the first project in Kazakhstan to build a highway using public-private partnership (PPP) mechanisms. Makyol has experience working in Morocco, Algeria, Iraq, Oman, Kuwait, Albania, Azerbaijan and Kazakhstan. Makyol has continuously been ranked within the Engineering News Record (ENR) for the «List of the Top International 250 Contractors of the world» since last ten years.
The fourth section of the Central Ring Road will pass through the southeast area of theMoscow region. It will start at the intersection with the M-7 Volga highway (kilometer zero of the A-113 CKAD highway) and finish at the intersection with the M-4 Don. This section of the Central Ring Road will pass through the municipalities of Noginsk, Pavlovo-Posadsky, Voskresensky and Ramensky, as well as through urban districts Elektrostal and Domodedovo.
The predicted traffic intensity for 2030 is 40.3 thousand vehicles per day. The section is a category IA of motorway, which has an estimated traffic speed of 140 km/h. The first phase of the project will see the construction of four traffic lanes(two in each direction).
During the construction, 17 bridges and eco-gardens, 40 overpasses and 9 flyovers will be built. The project includes the construction of six interchanges of various levels at the intersection with the M-7 Volga, MMK, Egorievskoe highway, the MSR-Chechevilovo-MBK road, the M-5 Ural, Vostryakovo-Obraztsovo (approach to the Domodedovo airport) and the M-4 Don highway.
For additional information contact:
Russian Direct Investment Fund
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
Andrew Hayes / Elena Garside
Tel: +44 (0) 20 7796 4133