Eurasian development bank to allocate RUB 10 billion as senior creditor under Central Ring Road 3 construction project

31 july 2017

Moscow, 31 July 2017. Eurasian Development Bank (EDB), acting as a senior creditor, is to allocate RUB 10 billion to implement a PPP project of building Central Ring Road 3. EDB, being part of the lending syndicate that includes major Russian banks, and Avtodorozhnaya Stroitelnaya Korporatsiya (Road Construction Corporation; ASK) have signed a package of documents related to financing this project. The maturity of EDB’s loan is up to 16 years. The total project cost is estimated at over RUB 80 billion.

EDB experts stress that construction of this road is of key importance for the transport sector as it would bring down freight and logistics costs. From the Bank’s perspective, this project is characterised by a large integration component as its implementation will help develop a range of major international transport corridors within the framework of the Europe-Western China route. It will link new М11 expressway Moscow-Saint-Petersburg and M-7 “Volga” road running to Kazakhstan. “If implemented, this large-scale, capital intensive project will offer a global solution to several issues at a time: first, it involves mobilisation of private capital to finance infrastructure projects using the PPP mechanism in the Russian Federation; secondly, it promotes economic growth of certain regions and countries, as transport infrastructure enables flows of goods and services and, thus, is one of the Bank’s priority areas of activity,” said Timur Abdullakhanov, Managing Director, Head of EDB Directorate for Transport and Infrastructure, during the signing ceremony.

It should be noted that earlier EDB signed a few agreements to acquire a 25-percent equity stake in Avtodorozhnaya Stroitelnaya Korporatsiya.

Additional Information:

Central Ring Road 3 is one of five start-up facilities of the Central Ring Road. This 105.3 km toll road will run parallel to Moscow Small Ring Road A107 in the north-eastern part of Moscow Region. It will link the new expressway running from Moscow to Saint-Petersburg and M-7 “Volga” road.

Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.

Avtodorozhnaya Stroitelnaya Korporatsiya (Road Construction Corporation; ASK) was named tender winner to be awarded a Concession to build and operate start-up facilities (stage) 3 of the Central Ring Road, a toll highway in Moscow Region, in accordance with Federal Law No. 115-FZ On Concession Agreements of 21 July 2005.

С urrently, the shareholders of ASK are Avtoban DSK holding 75% of its equity capital and Eurasian Development Bank holding 25%.

EDB Media Centre:
+7 (727) 244 05 45, ext. 6147 (Almaty)
+7 (495) 645 04 45, ext. 2724 (Moscow)
e-mail: pressa@eabr.org

Related news:
EDB acquires a share in ASK, a concession company building Central Ring Road 3

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