RDIF and a consortium of investors announce the commissioning of Start-up Facility No. 3 of the Central Ring Road
Moscow Region, November 11, 2020 – The Russian Direct Investment Fund, (RDIF, Russia’s sovereign wealth fund), jointly with construction investment holding “Avtoban” and the Eurasian Development Bank (EDB) have announced the commissioning of Start-up Facility No. 3 of the Central Ring Road (СKAD) in the Moscow region.
The facility was built on schedule and in accordance with the best international quality standards. The formal ceremony opening the facility to traffic took place today.
Start-up Facility No. 3 is 105 kms long, the longest road section of CKAD and construction under the concession agreement cost RUB81.4 billion. CKAD-3 runs parallel to the Small Concrete Ring A-107 at a distance of 100 to 700 meters and connects the new M-11 Moscow-St. Petersburg motorway and the M-7 Volga motorway. In total, the CKAD-3 includes 44 intersections at different levels with existing roads of various categories.
RDIF, together with its consortium partners, “Avtoban” and the EDB, are also constructing the fourth section, eventually ensuring the implementation of more than 40% of the entire CKAD project.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund, commented:
“The commissioning of the longest section of CKAD is a landmark event in the construction of the world's largest ring road. RDIF and partners are focused on implementing key infrastructure projects to achieve national development goals, including the Comprehensive Plan for the Modernization and Development of Mainline Infrastructure. The implementation of the CKAD project will deliver a huge improvement in the logistics of the European part of Russia, stimulate economic development and create 200,000 new jobs in the region, and also reduce transit traffic through Moscow and the Moscow region by more than 30%.”
Alexey Andreev, Chief Executive Officer of the Construction Investment Holding “Avtoban”, commented:
“Central Ring Road is one of the most needed transport projects for our country, connecting Russia to key interregional and international corridors. This is a real lifebuoy for Moscow, suffocating in traffic jams. Also, the Central Ring Road is one of the most high-tech Russian road projects. It will be equipped with “free flow” toll collection systems, with special antennas recognizing the transponders and the cameras reading the car's license plate and the number of axles at full speed. Taking over 50,000 transit vehicles every day, the Central Ring Road will turn the capital into a much more comfortable metropolis for living, with cleaner air and soil, with safer and more convenient space for drivers and pedestrians”.
Nikolai Podguzov, Chairman of the Management Board of the Eurasian Development Bank, said:
“The construction of Central Ring Road 3 is an excellent example of a development project. Our Bank has extensive experience and unique instruments in financing the construction of cutting-edge high-speed highways on the terms of public-private partnership. Today, we are involved in the construction of the fourth phase of the Central Ring Road (Central Ring Road 4), as well as in the construction of the Big Almaty Ring Road. We are also implementing high-speed highway projects in St. Petersburg. We plan to build up our portfolio of transport infrastructure development projects in all our member countries – Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, Russia, and Tajikistan”.
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. Currently, RDIF has experience of the successful joint implementation of more than 80 projects with foreign partners totaling more than RUB1.9 tn and covering 95% of the regions of the Russian Federation. RDIF portfolio companies employ more than 800,000 people and generate revenues which equate to more than 6% of Russia’s GDP. RDIF has established joint strategic partnerships with leading international co-investors from more than 18 countries that total more than $40 bn. Further information can be found at rdif.ru
Construction Investment Holding “Avtoban” is one of the five largest Russian road construction companies and is one of the key contractors of the Federal Road Agency Rosavtodor and the State Company Avtodor. Geographical presence of the holding is 15 regions in 5 federal districts of the Russian Federation, the key projects include new construction and reconstruction on the highways TsKAD-3, TsKAD-4, M1 “Belarus”, M3 “Ukraine”, M4 “Don”, M5 “Ural”, M7 "Volga", M8 "Kholmogory", and M11 "Neva". Gross volume of business, including PPP contracts, is over RUB250 billion. Holding provides a full range of services in the field of road, industrial, and civil construction, engineering, design, and operational services. «Avtoban» is one of the most active players in PPP market at the federal and regional levels. According to the results of 2019, the Russian credit rating agency RAEX (Expert RA) raised the corporate rating of the Autobahn holding to the ruA level, the ACRA rating agency — to the A- (ru) level. As of 2020, the number of the holding's personnel is more than 6 thousand employees, the fleet of road construction equipment is more than 1200 units. More detailed information is at www.avtoban.ru.
The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB's charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
For additional information contact:
Arseniy Palagin Andrew Leach / Maria Shiryaevskaya
Russian Direct Investment Fund Hudson Sandler
Press Secretary Tel: +44 (0) 20 7796 4133
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