The Government has reported on work to fulfill Presidential Instruction No Pr-2028 (paragraph 2) of 30 August 2013 on defining the financial and organisational model for the construction of the Moscow Region’s Central Ring Road (TsKAD) and on its subsequent operation.

The report defines the organisational structure of the TsKAD construction as a set of investment projects with individual financing and design companies for each new section to be constructed. Each section will be built by a separate company which will operate by issuing bonds and shares and use its own equity capital.

The third and fourth sections will be built under a concession agreement which provides for a phased return on investment through payments by the state once the road is put into operation. This scheme makes it possible to attract a great amount of private investment thanks to a special legal protection arrangement.

The first and the fifth sections will be constructed under a long-term investment agreement. The investor will be bound to provide complete design plans, prepare the construction site, build the road and ensure that it is serviced and maintained during the contract period, and also to provide co-financing using its own and borrowed funds.

The financial model for the project to 2018 is generally balanced, with funding from the National Wealth Fund being returned within an acceptable time frame with 6% interest. An estimate based on the existing parameters shows that the project will be recouped in 2050, and that it will be profitable by 2027, with minimum risks involved.