M-4 Don, km 517 — km 544 : Public Procurement Notice

On October 30, "RHW" SC presented the Project providing for Construction, Maintenance, Repair and Overhaul of M-4 Don Expressway at the Section km 517 — km 544 in Voronezh Region (bypassing N. Usman and Rogachevka settlements).

The event was attended by representatives of Russian and foreign investment and construction companies, credit institutions. 70 persons in total participated in the Project presentation.

Igor Urmanov, Deputy Chairman of the State Company Management Board presented the main aspects of the Project. He mentioned that the Section bypassing Voronezh and adjacent to the presented M-4 Don Section will be put into operation this year, so the Motorway becomes an expressway on a step-by-step basis.

The Project team the members whereof were representatives of "RHW" SC, Avtodor-Invest LLC and Russian Transport Academy presented technical, financial, legal and environmental aspects of the Project to the participants.

This Motorway Section will comply with Class IA meaning a motorway with the rated speed of 150 km/h. The estimated traffic density will be 8,400-10,600 vehicles per day. Two multilevel junctions, 16 overpasses and 2 pedestrian crossings will be erected during the Section construction. The Motorway will have four traffic lanes and a median 6 m wide.

The 29.15 km Expressway Section will be constructed in two years (2014-2015). The total object construction cost is RUB 17.4 bln, including the state financing of RUB 15.5 bln and the Contractor’s investment of RUB 1.9 bln. The Project will implement the life cycle contract model providing for the Contractor’s liability for the object quality within the entire period of the Long-Term Investment Agreement. The Agreement provides for the Contractor’s responsibilities to perform the construction site preparation and utilities relocation. In total 87 facilities shall be relocated, inter alia, 8 oil and gas pipelines, 23 power lines, 5 water supply and disposal systems, 51 communication elements.

Under the Agreement the Contractor shall maintain this Motorway Section. The toll collection system and automatic traffic control system will be operated and maintained, and the toll will be collected by an Operator engaged by the State Company. The Agreement Term shall be 22 years.

The Public Procurement Notice is scheduled for October 31, 2013. Expressions of Interest may be submitted until December 2, 2013 12:00 midday. According to the Bid Documentation, the Bid results shall be evaluated within 30 days from the date of opening the envelopes. Then the Investment Agreement shall be signed with the Bid Winner within 30 days.

According to Denis Patrin, Managing Director of Avtodor-Invest LLC the State Company is planning to enter into the Long-Term Investment Agreement in 2013.