The EDB to take part in financing the Togliatti bypass to be built as part of the Europe–Western China transport corridor
St. Petersburg, 3 June 2021. The Eurasian Development Bank (EDB), together with a syndicate of banks, intends to finance through the provision of equity financing the construction of a part of the Europe–Western China transport corridor – the Togliatti bypass (Russia) with a bridge over the Volga River. The agreement was signed during the St. Petersburg International Economic Forum by Nikolai Podguzov, Chairman of the EDB Management Board, and Alexey Andreev, Director General of DSK AVTOBAN.
The project is of strategic importance not only for the Samara Region but the entire of Russia. Vladimir Putin, President of Russia, took part in the signing ceremony via a video link. He emphasised that “the successful development of the regions and Russia as a whole depends to a large extent on state-of-the-art transport infrastructure. In this regard, I would like to mention the agreement on the construction of the Togliatti bypass with a bridge over the Volga. DSK AVTOBAN and the Eurasian Development Bank are investing about RUB 120 billion in this project. Its implementation will upgrade an important section of the international route between Europe and Western China.”
The Togliatti bypass project is being implemented under a concession agreement with the Ministry of Transport of the Samara Region to construct a 99.7 km road with a bridge over the Volga River. It will help to remove infrastructural constraints in the region. In particular, it is expected to reduce the traffic load on the Zhigulevskaya HPP dam and increase the speed of crossing the Volga. The ultimate outcome should be the enhancement of the transit capacity of Russia’s Volga Federal District.
The estimated cost of bypass construction is RUB 120 billion, of which about RUB 67 billion will be provided from the budget of the Russian Federation as a capital grant, with the rest being borrowings and equity loans.
“Our Bank is consistently implementing the Europe–Western China transport corridor project. The EDB is involved, together with DSK AVTOBAN, in the construction of Central Ring Roads 3 and 4 in the Moscow Region. The Bank is also financing the construction of the Western High-Speed Diameter in St. Petersburg and the Big Almaty Ring Road in Kazakhstan. The growing traffic requires the building of bypasses around major cities to balance economic growth and quality of life. The EDB is also ready to arrange financing for the roads around Perm, Omsk, Nizhny Novgorod, Kemerovo, and other cities with more than one million inhabitants in Russia and the EAEU,” said Nikolai Podguzov, Chairman of the EDB Management Board.
“The Europe–Western China international transport corridor, of which the Togliatti bypass is a part, is the most ambitious project for the development of Russia’s transport infrastructure,” commented Alexey Andreev, Director General of DSK AVTOBAN. “The direct connection of the world’s two rapidly growing economies, China and Western Europe, includes Russia in one of the most influential transport corridors. In cooperation with the EDB, we have successfully implemented Central Ring Road 3 and launched traffic on Central Ring Road 4 a year early. I am positive that, teaming with reliable partners such as the EDB, the Togliatti bypass investment project will be completed with impeccable quality and on time.”
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution promoting integration and development in its member countries – Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, Russia, and Tajikistan. The EDB's charter capital totals US $7 billion. The Bank was established in January 2006 and is headquartered in Almaty. The EDB’s portfolio mainly consists of projects with an integration effect in the areas of transport infrastructure, digitalisation, green energy, agriculture, industry, and machinery.
The EDB Media Centre:
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Sergey Gorbachev +7 (916) 727 22 00 (Moscow)