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Aug 17, 2018

Government signs order on construction of Northern Latitudinal Railway

The Russian Prime Minister Dmitry Medvedev has signed an order to conclude a concession agreement for the financing, construction and operation of the Obskaya-Salekhard-Nadym public transport infrastructure, otherwise known as the Northern Latitudinal Railway (NLR).

According to the order, the concessionaire will be NLR LLC, the concession provider Roszheldor.

The concession agreement will be signed not later than 8 September 2018.

As part of the concession, more than 350 kilometres of railway track and bridges across the Ob and Nadym rivers will be built.

The construction of the NLR is scheduled for 2018-2023.

The projected volume of freight shipments is 23.9 million tons, consisting mainly of gas condensate and oil.

The Northern Latitudinal Railway will be implemented on the principles of a public-private partnership in the form of a concession.

In global practice, public-private partnerships are the most progressive form for implementing such large-scale and capital-intensive projects since they enable the provision of financing and a rational distribution of the risks between the participants.

Within the framework of its investment programme, Russian Railways will carry out the reconstruction of the adjacent sections of the Konosh – Kotlas – Chum – Labytnangi stretch of Northern Railways, including Ob station, as well as the Pangody – Novy Urengoy – Korotchaevo railway line at Sverdlovsk Railways.

The company PJSC Gazprom will complete the construction and commissioning of its own 104-km railway line Nadym – Pangody.

Under the concession agreement, a special project company, NLR LLC, will provide the financing, construction and operation of the Obskaya-Salekhard-Nadym line. A railway section of the bridges across the Ob river and the Nadym river and approaches to them will be built, as well as a new 353-km railway section between Salekhard and Nadym.

The administration of the Yamalo-Nenets Autonomous District (YNAO) will be an investor in the construction of the automobile part of the bridge across the river Ob and will provide the necessary project documentation.

In addition, YNAO will transfer to federal property the plots of land needed for the construction of the railway, provide the construction companies with access to bodies of water and forest areas and accord advantageous rates on the property tax.

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