M-4 Don, km 517 — km 544 : Bid Final Results

The Bid Committee evaluated the results of the Open One-Stage Bidding Process for the Right to Enter into a Long-Term Investment Agreement on the Construction, Maintenance, Repair and Overhaul of M-4 Don Motorway from Moscow across Voronezh, Rostov-on-Don, Krasnodar to Novorossiysk at the Section km 517 — km 544 (bypassing N. Usman and Rogachevka settlements), Voronezh Region. Two Expressions of Interest were submitted by AVTOBAN Road Building Company OJSC and Transstroymekhanizatsiya LLC.

The Committee examined the Expressions of Interest in terms of their compliance with the general requirements and qualification criteria and evaluated them by the set criteria, such as organizational and technical proposals for the project implementation, the Motorway construction cost, its operation cost, inflation premium on the Contractor’s investment and the Bidder qualification. By the results of evaluation and comparison of the Expressions of Interest the highest score was awarded to Transstroymekhanizatsiya LLC that was declared the Bid Winner.

The project will be implemented under the Long-Term Investment Agreement the term whereof is 23 years. The construction works cost is RUB 17.3 bln (inclusive of VAT). The Project provides for the Contractor’s investment of RUB 1.9 bln (inclusive of VAT) to be returned at the Operation Stage under the Long-Term Investment Agreement. Under the Agreement the construction works shall be performed in 2014-2016. Once the construction is completed the Bid Winner undertakes to perform maintenance, repair and overhaul of M-4 Don Motorway at the Section km 517 — km 544 during the Agreement term.

Within the first part of the contract the Transstroymekhanizatsiya LLC professionals shall construct 29 km section of the new four-lane Motorway of Class IA with a median 6 m wide, two multilevel traffic junctions, 14 overpasses with the total length of 1,159 m and two pedestrian crossings with the total length of 163 m. At the new section the rated speed will be 150 km/h.

In order to mitigate the negative impact on the environment the Project provides for noise protection screens at the places subject to an increased acoustic load, a forest belt along the Motorway right-of-way boundaries and constructive works to provide for animal migration paths.