On work to fulfill the Presidential instruction on implementing infrastructure projects

The Government has reported on work to fulfill Clause 6 of Presidential Instruction No Pr-1474 of July 5, 2013 on implementing infrastructure projects.

The Government reports that proposals have been developed regarding the main structural parameters, sources of funding and mechanisms for the effective implementation of infrastructure projects, including the construction of the high-speed Moscow – Kazan railway, hereinafter referred to as the VSM, the Central Ring Motorway, hereinafter referred to as the TSKAD, and the modernisation of the Eastern Railway Network. These projects will receive funding on a repayable basis from the National Wealth Fund and pension savings, as well as private investment.

1. Under the VSM project, there are plans to build a 770 kilometre railway. This will strengthen inter-regional transport ties and attract new technology.

The VSM project will meet the following technical-economic parameters:

·        Maximum train speeds: up to 400 kph;

·        Number of employees: over 5,500;

·        Construction period: four years.

The project will be implemented by the High-Speed Railways Company, which will be set up for this purpose and will act as a special project and design company.

An update on the planned passenger-traffic volume shows that this will increase from 7.4 million people in 2020 to 14.2 million people in 2050.

The network VSM construction timeframe stipulates the following measures in accordance with the deadlines set:

·        Measures to allocate land plots and make decisions over compulsory purchase orders for land plots for VSM construction purposes;

·        The completion of design and surveying operations;

·        The completion of construction and assembly operations;

·        The purchase of rolling stock and the signing of long-term contracts;

·        Amending national legislation;

·        Provision of scientific support and implementation of personnel-training programmes;

·        Preparing the VSM for subsequent operation.

2. The TSKAD toll-way will be expected to handle the required lorry transits along the North – South and West – East routes, bypassing the existing Moscow transport hub infrastructure, as well as the development of terminal-warehouse and logistics businesses in adjacent territories.

The Steer Davies Gleave consultancy estimates 2019 TSKAD traffic volume at 45.7 million vehicles, reaching 79.5 million vehicles by 2036.

Calculations show that the cost of the project can be recouped in 2050, and that it will already be making money by 2027. 

Overall investment demand for high-priority measures to develop and modernise the infrastructure of the Eastern Railway Network up to 2017 has been assessed. This includes the Baikal-Amur Mainline and the Trans-Siberian Railway. This investment will make it possible to carry an additional 55.3 million tonnes of freight to seaports, border checkpoints and inspection stations in the Far Eastern Federal District.

Russian Railways has undertaken to finance a number of projects to develop and modernise sections of the Eastern Railway Network, with acceptable payback deadlines.

The Government has developed the proposals concerning the main parameters, sources of funding and mechanisms for the effective implementation of the above-mentioned three infrastructure projects, and has submitted them to the President for consideration.