DEAL: Moscow City Ring Road section 3

Author: Amélie Labbé | Published: 13 Oct 2016

Russia has just seen the only public-private partnership (PPP) concession project closing in the transport sector for 2016 so far, a $2 billion deal many hope will revive the national infrastructure market.

The project in question, the construction, operation and maintenance of section three of the five-stage Moscow Central Ring Road (MCRR), is located to the north-east of the city, and comprises a 105.3 km long stretch of road. Initial discussions for the construction of section three started in 2014, at the time the EU and US imposed economic sanctions on Russia following its involvement in Ukraine, so any decision was postponed until recently. The MCCR project in its entirety is expected to cost in the region of RUB 300 billion ($7.2 billion).

Russian construction company DSK Avtoban signed the 30-year concession agreement via its Avtodorozhnaya Stroitelnaya Korporatsiya (ASK) special purpose vehicle (SPV) with Russia’s state-owned motorway agency...