According to the initiative, the project involves construction of a regional public road section “Russky Island – Yelena Island – Kazanskaya Station” and its further operation on a toll fees basis
Implementing a strategy to create an infrastructure #MEGAPLAYER, Gazprombank together with Bamtonnelstroy-Most Group of Companies (BTS-MOST Group) has submitted a private concession initiative to the Government of Primorsky Krai to participate in the project for the construction of the Vladivostok Ring Road (VKAD), Stage-I. VKAD LLC, a joint venture between the Bank and BTS-MOST Group, acts as a concessionaire within the project.
According to the initiative, the project involves construction of a 9.7-km-long regional public road section “Russky Island – Yelena Island – Kazanskaya Station”, including 2 km of a bridge across the Eastern Bosphorus Strait, and its further operation on a toll fees basis. The project also envisages federal co-financing within the Far Eastern Concession mechanism.
Gazprombank intends to take part in the project not only as a member of a joint venture but also as a senior creditor.
“This section of the VKAD is one of the priority projects in Russia, it will connect Russky Island with Yelena Island providing a convenient bypass route around the central part of the city. We see that several major players on the market of infrastructure projects, including our Chinese colleagues CRCC International Investment Group, have shown their interest in the project. Here, at Gazprombank, as a leading financing institution involved in the road infrastructure construction in Russia, we believe that we can offer the most effective solutions to implement this project relying on our unparalleled experience and expertise, and we are ready to participate in the bid, which will be announced by Primorsky Krai in the near future, as we expect,” Pavel Brousser, First Vice President and Head of the Department of Infrastructure Projects and PPP, of the Bank said.
There are road construction projects, implemented according to PPP principals with the involvement of the Bank, that have already been executed or are at a high readiness level, which could not be delivered without this mechanism, such as the Khabarovsk Bypass, the Ob Bridge in Novosibirsk, the Tolyatti Bypass, the Syktyvkar-Naryan-Mar Highway, the Western High-Speed Diameter in St. Petersburg, as well as several projects in the Moscow region, including the third, fourth and fifth sections of the Central Ring Road. The Bank’s overall portfolio of road infrastructure projects exceeds 700 billion rubles.
“The Russian Far East is one of the key presence regions of BTS-MOST Group. Our specialists have already delivered hundreds of projects in the region. The bridge to Russky Island, one of the most significant infrastructure facilities of Primorsky Krai, is one of them. The company shows its enthusiasm for the development opportunities of the Far Eastern transport infrastructure. The VKAD construction project is of particular interest. Taking into account long-term experience of our builders and technical equipment of the company, as well as our partnership with one of the largest banks in the country, we are convinced that the VKAD project will be carried out at the highest level,” General Director of VKAD LLC, member of the Board of Directors, Deputy General Director for Prospective Development of BTS-MOST JSC Vitaly Shishmarev said.
Bamtonnelstroy-Most Group of Companies is one the leading Russian construction holding companies specializing in the development of transport infrastructure facilities all over Russia. The company is involved in construction and reconstruction of railways and roads, small and large bridges, tunnels, ports and berths, hydrotechnical facilities, and airport runways. More than 2,500 projects were completed in 47 years of the company’s existence.