VTB and Samsung to compete on St Petersburg Western Bypass Toll Road construction
The project has attracted interest from South Korea’s Samsung, a VTB Bank subsidiary, and the Baltic Concession Company Magistral.
The Western High Speed route, part of a toll highway 46.4 km long connecting north and south of St. Petersburg, bypassing the central city road network is expected to carry more than 100 thousand cars a day. The construction of the central section, stretching 11.4 kilometres, will cost 135 billion roubles and should be completed by the end of 2015, along with completion of Southern and Northern parts of the route.
Yury Molchanov, Vice-governor of St. Petersburg, who oversees the transport unit of the city, said the contest will provide fair competition and a choice of benefits for the state budget.
“The city administration was pleased that pre contest stage attracted three qualified participants, it ensures competition, and therefore – better conditions for the city and the federal budget. The terms of the contest and payback period is now more attractive to potential investors and much more understandable than three years ago, when the government just started a strategic project. The state will sign a tripartite agreement with the winner on 30 years of continued exploitation of the constructed toll road”
Evgeniy Shago, Head of Research Ingosstrakh-investment, notes that all applicants are even.
"The favorite will appear as soon as the draft projects are presented and investments are calculated.”