Russia launches nation-wide road revamp
Published: 27 July, 2010, 21:32
Edited: 28 July, 2010, 06:26
TAGS: Medvedev, Russia, Budget, Vehicles, Prime Time Russia
Russia will spend hundreds of billions of rubles on the modernisation of the country's roads.
The decision to set up a special road fund was taken today by President Medvedev during a meeting with Finance minister Aleksey Kudrin.
The fund will be used to build and maintain Russia’s crumbling road system, which has long been sharply criticized – in particular, by construction workers who said that there was not enough funding to make any progress and develop the road system.
Meanwhile, tackling the issue, Kudrin said, is an urgent need as the quality of roads is closely connected with the country’s economy.
The Finance Minister also added that such a plan was previously planned but, because of the crisis, the ministry was forced to put it on hold.
Now, as the plan is back on track, quite significant funds are to be allocated to it – around $12.6 billion in 2011 and 2012, and as much as $13.6 billion – in 2013.
The initiative is to be financed by increased petrol taxes that will be increased by one ruble per litter annually.
The opponents of the plan, however, argue that this money will inevitably end up in officials’ pockets.
As the most recent example, they cite road construction for the 2012 Sochi Olympics: the whole project, involving a 30-mile stretch of road, cost Russia $7.5 billion. Critics say that for the same price they could just as well have paved the 30 miles with foie gras.
Foreseeing the arguments, the President has come up with a backup plan.
“Russia may be the most helicopter-friendly country in the world,” Medvedev said. “This is convenient; it doesn't require setting up advanced communication systems. There will be obstacles of course, but the idea is worth it.”
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Finally !!!