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Sep 29, 2015

Russian-Chinese working group on high-speed railways discusses production localisation in Russia

The fourth meeting of the Russian-Chinese working group of enterprises on cooperation on high-speed railways has ended in the Chinese city of Chengdu. The Russian Railways' delegation at the event was headed by Alexander Misharin, First Vice-President of Russian Railways, while the Chinese delegation was led by Huang Min, Managing Deputy of China Railways.

The parties discussed the prospects for implementing the Moscow - Vladimir - Nizhny Novgorod - Cheboksary - Kazan high speed railway project, which is currently being designed by a Russian-Chinese consortium consisting of institutions and with the participation of OJSC Mosgiprotrans, OJSC Nizhegorodmetroproekt and China Railway Eryuan Engineering Group Co. Ltd.

The working group agreed to begin preparing the list of products required to build the high-speed railway and whose production could be localised in Russia.

This project envisages a deep localisation, with 80% of all materials to be produced in Russia, which in turn means large orders for Russia's domestic industry. The production of the modern high-speed rolling stock will also be localised in Russia.

At the meeting the sides also discussed issues relating to the project's organisational and legal model and investment and finance plans for the construction of the Moscow - Kazan high-speed railway.

The Chinese side confirmed its intention to invest the equivalent of 250 billion roubles in the project and to consider the possibility of increasing the amount of loans to 150 billion roubles.

The specially created investment fund Silk Road and the China Development Bank may take part in the financing. The project's organisational and legal model will be finally agreed before the end of 2015.

The complex engineering survey for the Moscow - Vladimir - Nizhny Novgorod - Cheboksary - Kazan line will be completed in 2016. During the course of the work, the draft plan and draft land survey will be carried out, prepared and approved, and the project documentation with the construction phases worked out. The developed project documentation will then be subject to an export report by the Federal Autonomous Establishment Glavgosexpertiza Russia, as well as to a financial and technical audit.

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After the completion of the design and project work and the approval of the legal and financial model, construction companies will be chosen on a competitive basis to build the Moscow - Kazan high-speed rail project, as well as suppliers of the rolling stock.

The Moscow - Kazan high-speed railway line will stretch for 770 km, pass through the territory of 7 constituent entities of Russia and make 15 stops. The trains will travel at speeds of up to 400 kph. The travel time between Moscow and Kazan will be 3.5 hours. The line will link up regions with a population of about 25 million people and provide hourly connections between major cities. During the line's first years of operation the annual passenger numbers are estimated at 10.5 million.

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