RDIF, Middle Eastern funds to invest over 4 bln rubles in Central Ring Road-4
MOSCOW. Dec 13 (Interfax) - A consortium of investors including the Russian Direct Investment Fund (RDIF) and a group of leading Middle Eastern funds, have announced the completion of funding for the Startup Facility No. 4 of the Central Ring Road (CKAD-4) in the Moscow region, the RDIF said in a press release.
Following completion of equity and debt financing, the project will amount to around 40 billion rubles, with RDIF and partners providing more than 4 billion rubles. Sberbank (MOEX: SBER), Gazprombank (MOEX: GZPR), the Eurasian Development Bank and VEB.RF are also acting as project creditors.
RDIF is the leading partner of the project with a 40% stake in the concessionaire for the construction of CKAD-4 - South-Eastern Highway LLC. GK Avtoban acts as the operating partner.
The construction of CKAD-4 is planned to be completed no later than October 2021.
"Financing of this project by RDIF and partners will enable the timely completion of the construction of a nearly 100 km-long 4th section of the Central Ring Road. Taking into account that the 3rd section has also been financed by RDIF, the Fund and partners support the implementation of 40% of CKAD project. It will become the largest ring road in the world meeting all international standards and tasks set out by the National project 'Safe and High-Quality Roads'. Implementation of CKAD project will fundamentally change the logistics in European part of Russia, it will give a boost to economic development, creating 200,000 new jobs in the region and reducing transit traffic through Moscow and the Moscow Region by more than 30%," said RDIF chief Kirill Dmitriev.
CKAD-4 is one of the most challenging stages of the ring road from the point of view of selecting project participants, who have changed on several occasions since 2014. Originally it was thought CKAD-4 would be built by December 2019, but this has now been put back until December 2020. CKAD-4 will stretch from the M-7 Volga and M-4 Don highways in southeast Moscow via the Noginsk, Pavlovo-Posad, Voskresensk and Ramensky districts and Elektrostal and Domodedovo.