07.06.2019
On the second day of the St. Petersburg International Economic Forum, an agreement was signed on the construction of a bridge across the Kaliningrad Bay. The document was signed by the Chairman of the Board of Directors Igor Snegurov on behalf of VIS Group, and Governor Anton Alikhanov on behalf of the Kaliningrad Region.
A private concession initiative on the investment project’s implementation was submitted to the Government of the Kaliningrad Region on behalf of the Tenth Concession Company (member of VIS Group). This large-scale project is of strategic importance for the region, and there have been previous attempts to implement it. However, it has become possible solely due to the support of the private investor.
The new bridge will connect the Kosmodemyansky and Shosseiny villages. The total span of the road infrastructure, including the bridge over the Pregolya River, approaches, overpasses and junctions will approximate 8 kilometers. The high-speed four-lane road will be part of the ring route in the Primorsk recreational zone.
“The bridge in the Kaliningrad region is our holding’s fourth major concession project in the transportation sector. We consider it to be our contribution to the implementation of the comprehensive modernization and trunk infrastructure expansion plan, approved by the President of Russia. The new bridge in the country’s westernmost region will create opportunities for its intensive development, open new transport corridors to Europe, and improve transport accessibility for Kaliningrad residents,” said Igor Snegurov, Chairman of the Board of Directors of VIS Group.
Bridge design and construction is slated to take 5 years and 3 months. The operational stage of the established facility is 23 years. The preliminary cost of design and construction is estimated at about 35 billion rubles at the prices of Q4 2018. The final estimated cost will be refined following the results of the government expert review of project documentation and the accuracy of the estimated cost with recalculation into prices of the respective years of the facility construction. VIS Group is investing approximately 15 billion rubles in the project, including proprietary and borrowed funds. The rest should be attracted through budget financing. To reduce the burden on the regional budget, the project provides for toll collection, with an amount set by the Government of the Kaliningrad region. This will reduce the size of payments to the concessionaire for the constructed and commissioned bridge.
Anton Alikhanov noted the importance of the new project for the development of public-private partnership mechanisms in the region. “This concession can become the driving force of our region’s infrastructural development. We are pleased that a company with extensive experience in the public-private partnership market, which supports the construction of strategically important facilities in various Russian regions, is becoming a new investor in the Kaliningrad region,” he said.
The construction of a bridge across the Kaliningrad Bay was stipulated by the master plan for the development of the regional capital until 2035. It will allow to loop the Ring Road, connect Kaliningrad’s Southern and Northern bypasses, reduce the distance between settlements by 40 km. The project will allow the traffic flow from the north-west of the region to shift to Riga-Kaliningrad-Gdansk branch of the trans-European transport corridor 1-А, improve the area’s transport accessibility and allow to eliminate heavy vehicle transit traffic through Kaliningrad. After the project is implemented, the regional budget will additionally receive substantial tax revenues.
SPIEF-2019: VIS Group and the Kaliningrad Region sign a bridge construction concession agreement
A private concession initiative on the investment project’s implementation was submitted to the Government of the Kaliningrad Region on behalf of the Tenth Concession Company (member of VIS Group). This large-scale project is of strategic importance for the region, and there have been previous attempts to implement it. However, it has become possible solely due to the support of the private investor.
The new bridge will connect the Kosmodemyansky and Shosseiny villages. The total span of the road infrastructure, including the bridge over the Pregolya River, approaches, overpasses and junctions will approximate 8 kilometers. The high-speed four-lane road will be part of the ring route in the Primorsk recreational zone.
“The bridge in the Kaliningrad region is our holding’s fourth major concession project in the transportation sector. We consider it to be our contribution to the implementation of the comprehensive modernization and trunk infrastructure expansion plan, approved by the President of Russia. The new bridge in the country’s westernmost region will create opportunities for its intensive development, open new transport corridors to Europe, and improve transport accessibility for Kaliningrad residents,” said Igor Snegurov, Chairman of the Board of Directors of VIS Group.
Bridge design and construction is slated to take 5 years and 3 months. The operational stage of the established facility is 23 years. The preliminary cost of design and construction is estimated at about 35 billion rubles at the prices of Q4 2018. The final estimated cost will be refined following the results of the government expert review of project documentation and the accuracy of the estimated cost with recalculation into prices of the respective years of the facility construction. VIS Group is investing approximately 15 billion rubles in the project, including proprietary and borrowed funds. The rest should be attracted through budget financing. To reduce the burden on the regional budget, the project provides for toll collection, with an amount set by the Government of the Kaliningrad region. This will reduce the size of payments to the concessionaire for the constructed and commissioned bridge.
Anton Alikhanov noted the importance of the new project for the development of public-private partnership mechanisms in the region. “This concession can become the driving force of our region’s infrastructural development. We are pleased that a company with extensive experience in the public-private partnership market, which supports the construction of strategically important facilities in various Russian regions, is becoming a new investor in the Kaliningrad region,” he said.
The construction of a bridge across the Kaliningrad Bay was stipulated by the master plan for the development of the regional capital until 2035. It will allow to loop the Ring Road, connect Kaliningrad’s Southern and Northern bypasses, reduce the distance between settlements by 40 km. The project will allow the traffic flow from the north-west of the region to shift to Riga-Kaliningrad-Gdansk branch of the trans-European transport corridor 1-А, improve the area’s transport accessibility and allow to eliminate heavy vehicle transit traffic through Kaliningrad. After the project is implemented, the regional budget will additionally receive substantial tax revenues.