M-11 Moscow — Saint Petersburg , Stage 6 : Project Information Memorandum Presented

"RHW" SC presents the Information Memorandum of the Project on «Construction, Maintenance, Repair, Overhaul and Toll-Based Operation of Moscow — Saint Petersburg Expressway at the Section km 334 — km 543».

The Information Memorandum is made to inform the market participants on the project and the key conditions of its implementation in advance.

The Memorandum contains the main information on the Project of Section km 334 — km 543 of Moscow — Saint Petersburg Expressway. According to the preliminary schedule, the official Public Procurement Notice and the Bid Documentation will be published on August 30, 2013. The bidding procedures term will be two months, the Agreement is to be signed in mid-November 2013.

The 217.1 km Section of the Expressway will be constructed in 2014-2018. The total object construction cost is RUB 149.1 bln, including the Contractor’s investment of RUB 15.96 bln.

The project shall be implemented by the Contractor pursuant to the approved design and estimate documentation, for which the Approval of the FAA (Federal Autonomous Agency) Glavgosekspertiza of Russia was obtained on November 16, 2012.

The Motorway Section will pass across Tver and Novgorod Regions. The Section will pass across Vyshny Volochek and Bologoe Districts of Tver Region and Okulovo, Malaya Vishera and Novgorod Districts of Novgorod Region.

This Motorway Section will comply with Class IA meaning a motorway with the rated speed of 150 km/h. The Motorway will be four-lane along the entire length. More than 100 bridgeworks and a number of traffic junctions will be erected in the course of its construction.

Being located in relative proximity to the existing M-10 Russia Motorway, the project enables to preserve the existing transport links within the constituent entities and takes into account the long-term development of transport infrastructure.

The project is implemented within the construction of Moscow — Saint Petersburg Motorway being in line with the state priorities, including those stipulated in the Transport Strategy of the Russian Federation until 2030 and is at the stage of active implementation.

Today the Section km 15 — km 58 construction is commenced on the basis of the Concession Agreement entered into in accordance with Decree of the Government of the Russian Federation No 511-r dated April 24, 2007. In the end of 2011, the Long-Term Investment Agreement was entered into on construction of Section km 258 — km 334 (bypassing Vyshny Volochek) under the life cycle contract scheme. In summer 2013, the Open Bidding Process for the Right of Financing, Construction and Toll-Based Operation of Section km 543 — km 684 was announced.

The Section km 334 — km 543 will be a part of the modern and efficient high-speed road infrastructure that ensures transport connection between Moscow and Saint Petersburg, will make transit traffic pass beyond the streets of Tver, Vyshny Volochek and 52 settlements and will create conditions for economic growth of the regions in the Motorway attraction zone.

The Project will be implemented under the Long-Term Investment Agreement being a type of public-private partnership agreement. It is a mixed civil-law contract that contains elements of various contract types provided for by the current legislation of the Russian Federation (contractor agreement on the Motorway construction, maintenance, repair, overhaul, works and services related to the operation of toll collection system and automatic traffic control system). The Parties to the Long-Term Investment Agreement will be "RHW" SC and the Contractor to be selected by the open Bidding Process results. The project financing is provided for by the Program of Activities of "Russian Highways" State Company for a Long-Term Period (2010-2020).

The Agreement Term shall be 26 years. Once the construction is completed the Contractor will maintain the Motorway, the toll collection system and the automatic traffic control system within 21 years. The design documentation provides for a closed toll collection system, i.e. toll booths (TB) shall be set up at all entries to and exits from the toll Motorway. Today the Project provides for TB at km 348 and km 402, as well as at two Central Control Units at km 444 and km 524. The toll amount will depend on the actual distance. The Agreement provides for the Operation and the Investment Payments that shall be made by the Customer to the Contractor.