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Feb 15, 2019

Russian Railways implements infrastructure projects through Public-Private Partnerships

"Public-Private Partnerships (PPPs) contribute to the creation and implementation of national infrastructure projects," Alexander Misharin has said.

Misharin, First Deputy Managing Director of Russian Railways, was addressing the session "National Infrastructure Priorities-2024: Identify Quickly and Implement Efficiently," which was held within the framework of the Russian Investment Forum in Sochi.

As an example, Alexander Misharin cited the experience of Russian Railways in implementing infrastructure projects for which financing had been obtained from the federal and regional budgets, as well as from private investors and from the Company’s own internal funds.

Now, the Northern Latitudinal Railway project will be implemented using a PPP. Under discussion is the question of private capital participating in the project on a par with state financing to develop the St. Petersburg transport hub.

Another example of a public-private partnership is the planned construction of a Moscow - Nizhny Novgorod - Kazan high-speed railway line.

A total amount of 621 billion roubles in financing will be required for the first section between Zheleznodorozhny – Gorokhovets, with 200 billion roubles coming in the form of a capital grant, that is state support as envisaged in the Comprehensive Plan for the Moderniation and Expansion of Main Line Infrastructure 2019-2024, with another 201 billion roubles to come from OJSC Russian Railways. The financing will come from the concessionaire’s own and borrowed funds.

In other words, more than two roubles will be obtained from extra-budgetary sources and invested in the project for every rouble of budget funds.

In general, the Company’s long-term investment programme provides for an investment of about 9 trillion roubles in various projects. It is planned that 4 trillion roubles of this total will come from private investors.

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