RDIF and Shandong Hi-Speed Group invest in road infrastructure in the Khabarovsk Region
Press release, 11.09.2018
Vladivostok, September 11, 2018 - The Russian Direct Investment Fund (RDIF), the sovereign wealth fund of Russia, Shandong Hi-Speed Group, the Chinese state road construction and service company, the Khabarovsk Region Government and VIS Group, a Russian multidisciplinary holding company, have agreed to jointly invest to develop road infrastructure in the Khabarovsk Region. A corresponding agreement was signed today on the sidelines of a meeting between Russian President, Vladimir Putin and Chinese President, Xi Jinping during the Eastern Economic Forum.
The partnership will see the parties focus on the concession for the construction and operation of the motorway "Bypass of Khabarovsk km 13 - km 42". The partners will participate in the joint operation and maintenance of the highway in the Khabarovsk Region, as well as the construction of supporting infrastructure. The construction of the Khabarovsk bypass is the first example of a public-private partnership (PPP) to construct roads in the Russian Far East. It is also the first transport infrastructure concession in Russia to involve a leading Chinese strategic investor.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), noted:
"Shandong Hi-Speed Group’s participation in the operation and maintenance of Russian roads is an important example of Chinese participation in Russian transport infrastructure. We believe that this is the first agreement of its kind and it lays the foundation for attracting leading Chinese road companies to partake in Russian transport concessions. We believe that the experience of our Chinese partner in modern highway construction and management will help make our roads more comfortable, safe and efficient."
Igor Snegurov, Head of VIS Group, said:
"We are currently focusing on attracting foreign partners to build upon existing projects. The construction of the motorway in Khabarovsk is an example of such a project. SDHS now plans to invest not in the road itself but in the adjacent infrastructure including services, production facilities, shopping outlets, logistics centers, hotels and petrol stations. In this way we are able to multiply the project’s effect, create additional jobs and increase the efficiency of the new road infrastructure."
Dean Bicheng, Head of Representative Office in Moscow, China Shandong Group for Foreign Economic and Technical Cooperation (SDHS-CSI), said:
"Russia is one of the countries covered by the “Belt and Road” initiative. The implementation of such a large transport infrastructure project will not only enhance transport and tourism, but also contribute to regional economic development. The participation of the first Chinese company in a concession project in Russian transport infrastructure will help attract other Chinese companies to this sector."
Vyacheslav Shport, Governor of the Khabarovsk Krai, said: The Khabarovsk City Bypass – is a ground-breaking project for the road sector of the Khabarovsk Krai, which will provide the impulse for development of other sectors, including construction industry and tourism. Of course, it is not just a highway, but it should be the facility with required infrastructure – hotels and service stations. It means new jobs and tax revenues. Furthermore, participation of a large investor from China will give us a unique experience and competencies, which we can use when implementing transportation projects in our region.
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
VIS Group is a Russian multidisciplinary holding company that implements large infrastructure projects. VIS Group is one of the leaders in the field of infrastructure construction on the principles of public-private partnership. The holding invests its own funds in the creation of social, transportation and communal facilities. The portfolio of contracts of VIS Group is formed up to 2036, its estimated value is more than 630 billion rubles. The Group is headquartered in Moscow, with offices located in eight regions of the Russian Federation. Further information can be found at http://pfvis.com/company/
China Shandong Group for Foreign Economic and Technical Cooperation (SDHS-CSI) is a large group of companies focused on foreign economic activity. The group’s establishment was approved by the State Council of China in 1984. In 2008, it became a subsidiary of the Shandong High-Speed Group of China (SDHS), the largest state-owned enterprise in Shandong Province. SDHS-CSI has been included in ENR’s list of the world’s 250 largest international contractors for many years. As a platform for implementing SDHS’ global strategy, SDHS-CSI is involved in foreign investment projects, international contracting, economic aid, sharing human resources, and international education programs. Construction and investment projects are carried out in 106 countries and across five continents. Further information can be found at http://www.china-csi.com.cn/
For additional information contact:
Russian Direct Investment Fund
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
Andrew Hayes / Andrew Leach
Tel: +44 (0) 20 7796 4133