Vnesheconombank and Road Investment Company (DIK) have signed a loan agreement to finance the project to rehabilitate and operate sections of the M-4 Don highway and a direct agreement with a public contracting authority, Russian Highways, to regulate the interaction among the project participants. The project involves the comprehensive planning, rehabilitation, maintenance and toll-based operation of a 228-kilometre section of the M-4 Don federal highway from Rostov-on-Don to Krasnodar. The total project value is 5.549 billion roubles.
“Vnesheconombank will inject more than 2 billion roubles into the project for a term until 2027. Vnesheconombank decided to finance the project in January 2018. Vnesheconombank will invest in the transport infrastructure, road infrastructure and toll roads. The project is consistent with the strategy of the Bank as a development institution and meets the quantitative and qualitative requirements of our Memorandum on Financial Policy. Such infrastructure projects produce a considerable multiplying effect on development in connection with lifting existing restrictions, developing other economic sectors and encouraging more investment,” Vnesheconombank’s First Deputy Chairman and Member of the Board Dmitry Kurdyukov said.
The project is implemented under the federal targeted programme Russian Transport System Development until 2020 under the long-term operation agreement between Russian Highways and DIK (a project company whose shareholders are the Russian Direct Investment Fund (RDIF) and foreign investors attracted by RDIF).
Additionally, Vnesheconombank is involved in financing two projects to build motorways: a section of the Moscow–Saint Petersburg highway and the Western High-Speed Diameter in Saint Petersburg. The total project value is 190.3 billion roubles, with Vnesheconombank’s commitment of 37.4 billion roubles.
The Russian Direct Investment Fund (RDIF) is Russia’s sovereign wealth fund making equity investments mainly in Russia jointly with major foreign financial and strategic investors. RDIF is an accelerator of direct investment in the Russian economy.
Russian Highways is a government-linked company established in 2009. Its purpose is to develop a network of high-speed highways, attract private investment and develop roadside service facilities. The Company is an asset manager of highways such as M-1 Belarus, M-4 Don, M-3 Ukraine and the new M-11 Moscow–Saint Petersburg highway. Russian Highways is also responsible for the construction of the Central Ring Road in Moscow and the Moscow Region. Russian Highways applies PPP mechanisms to all large-scale projects.