Two capitals highway LLC will allocate up to 5 billion rubles for financing of works at the 7-8 stages of M-11 highway

On 27 February Two capitals highway LLC - the concessionaire of the construction project and further toll operation of 7-8 sections of toll highway M-11 Moscow-St.Petersburg (543 km-684 km) - held a meeting with representatives of General contractor, key subcontractors and suppliers involved in the project implementation. During the meeting issues arising in the course of project implementation were discussed, as well as tasks for the current year were determined, solution of which will allow to complete the entire construction works at the project site within the timeframes defined  in the Concession agreement.

Anton Novikov, CEO of Two capitals highway LLC, informed participants of the meeting about allocation of additional sums to be paid for financing of works at the 7-8 stages of M-11 highway.

 "In cooperation with the State company Avtodor, we are implementing very complex, unique project, both from technical and financial point of view. The Concession agreement  defines a complex financing scheme “- noted A. Novikov.

According to the General contractor, the works to the amount of more than 24.5 billion rubles has been already performed on the site. However, the acceptance and payment of works is being executed while the large completed range of construction and installation works is being formed and handed over. 

" We are actively working on optimizing this scheme. This requires significant efforts to coordinate design and financial documents with the Grantor, funding and credit organizations, the General contractor. Due to this work we were able to balance the structure of the project financing," stressed CEO of Two capitals highway LLC.  - “Additionally since May 2016 more than 9,3 billion rubles were allocated for advancing the works instead of 3 billion rubles concessionaire had to allocate accordance with the contract. Now we are ready to allocate about 5 billion. rubles. The total volume of financing, however it will not exceed the level determined by the Concession agreement”.

In addition, according to Novikov, the rate of handing over the completed construction elements has greatly increased, that will provide the dynamic financing of the project.

During the meeting the key tasks for 2017 were also identified for implementing the approved work schedule. It includes, inter alia, ensuring the delivery of all required materials and steel structures to the project site by middle of 2017, as well as implementation of range of works for connecting 7 and 6 sections of M-11 highway in Novgorod region.

The General contractor has made the works schedule taking into account the necessary dynamics of subcontractors’ activities financing.

We remind that, construction of 7-8 sections of toll highway Moscow-St. Petersburg has been conducted since June 2015. The 137.6 km long road section of M-11 highway goes from Saint Petersburg ring road through Moscow and Pushkin districts of Saint Petersburg, through Tosnenskiy districts of Leningrad region, through Novgorod and Chudovskiy districts of Novgorod region.

Currently the excavation works, sand bedding of road embankment and base course, installation of man-made structures are going on at the project site, the construction of the interchanges with M-10 federal highway, A120 road,  the CAD and the tunnel under the Varshavskaya direction rail road.

About 2000 workers are engaged in the project, as well as more than 600 vehicles. The connsrtruction works will be completed by the end of June 2018.  

Construction of 7-8 sections of M-11 Moscow-St.Petersburg highway - is a key infrastructure project of North-West region of Russia. The highway will bypass all inhabited localities that would divert a part of traffic flow from congested M10 "Russia" highway and offload suburban and regional roads.

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