Two Capitals Highway, LLC is the concession owner of the construction project and further operation on a free paid basis of Phases 7-8 of the toll road M-11 Moscow-St. Petersburg (543rd km – 684th km). On February 27, the company held a meeting with the participation of representatives of the general contractor, with key subcontract organizations and supplier companies involved in the project implementation. Questions concerning the project progress were discussed during the meeting and tasks for the current year were determined. Solution of these tasks will allow completing the entire construction works according to the terms designated in Concessionary agreement.
Two Capitals Highway, LLC is the concession owner of the construction project and further operation on a free paid basis of Phases 7-8 of the toll road M-11 Moscow-St. Petersburg (543rd km – 684th km). On February 27, the company held a meeting with the participation of representatives of the general contractor, with key subcontract organizations and supplier companies involved in the project implementation. Questions concerning the project progress were discussed during the meeting and tasks for the current year were determined. Solution of these tasks will allow completing the entire construction works according to the terms designated in Concessionary agreement.
Anton Novikov, Director General of Two Capitals Highway, LLC reported to participants of the meeting about allocation of additional funds for financing the works at Phases 7-8 of M-11 Highway.
“Together with the State Company Avtodor, we implement a very complicated and unique project, both fr om technical and financial point of view. The concessionary agreement provided rather difficult scheme for financing of the project" - A. Novikov noted.
Thus, according to the General Contractor, the amount of completed works is now over 24,5 billion rubles. At the same time, acceptance and payment for works is performed with the forming and delivery of large elements, i.e. a complete scope of installation and construction works.
“We work hard on optimization of this scheme. It demands essential efforts to approve the project and financial records with the concessor, financing and credit institutions, and the General Contractor. Thanks to this work, we managed to balance the financial structure of the project, emphasized the Director General of Two Capitals Highway, LLC. – “So over 9,3 billion rubles instead of initially assumed 3 billion rubles were already directed for these purposes for advancing of works since May 2016. Now we are ready to allocate about 5 billion rubles. And total funding of the project is kept at the level provided by the Concessionary agreement.”
Besides, according to A. Novikov, the currently progress rate is higher, number of finished construction objects considerably increased. It can provide a faster financing of the project.
Key objectives for 2017 to fulfill the schedule of work were determined during the meeting. It includes, without lim itation, ensuring delivery to the site of the most required inert materials and steel structures for building spans by the middle of 2017, and also accomplishment of the package of road construction works connecting Phases 6 and 7 of the highway to the federal M-10 Highway in Novgorod Region.
The General Contractor also made progress schedules taking into account the financing in time of subcontract organizations.
We remind that building of sections 7-8 of the new Moscow-St. Petersburg toll highway has been in progress since June 2015. The 137,6 km long section of the M-11 Highway passes from St. Petersburg Ring Road across the territory of Moscow and Pushkin districts of St. Petersburg, through Tosnensky district of Leningrad Region, through Novgorod and Chudovo districts of Novgorod Region.
At this moment, excavation works, dumping of sand fill and base course, organization of engineering structures, construction of road interchanges with federal highway M-10, highway A-120, the ring highway of St. Petersburg, tunnel under the operating railroad in the direction of Warsaw are being performed.
About 2000 people as well as over 600 pieces of equipment are engaged in the project. Construction works will be completed in June 2018.
Building of sections 7-8 of M-11 Moscow-St. Petersburg Highway is the key infrastructure project of the Northwest region of Russia. The highway will pass in roundabout way of all settlements. It will allow switching a part of traffic from the congested highway M-10 Russia and redirect the traffic to suburban and regional roads.
Specification on the project:
Concessor – Russian Federation represented by the State Company Russian Highways (Avtodor)
Concession owner – Two Capitals Highway, LLC
Capital costs: 76,8 billion rubles.
Capital grant of Concessor - 57,600 billion rubles (75%)
Investments of the concession owner - 19,2 billion rubles (25%)
Total actual length of the section – 137,6 km.
Highway class – 1A highway.
Number of lanes of traffic – 4-6.
Constructional works:
Bridges – 18; Highway-over crossing of the main line – 30; road interchanges – 3.
Tunnel – 1.
For reference:
New M-11 Moscow – St. Petersburg Highway will stretch from the Moscow Ring Road to St. Petersburg Ring Road Junction. The total length of the highway is 669 km.
The highway will pass through the territories of the Central and Northwest federal districts, across Moscow, Tver, Novgorod and Leningrad regions leaving the populated localities.
The new Moscow – St. Petersburg Highway will be essentially parallel to the existing M-10 Russia motorway and will cross the latter at 58th, 149th, 208th, 258th, 334th, 543rd km (grade-separated crossings are planned). It will allow switching transport flows from M-10 Russia to the highway and vice versa.
The construction of M-11 Highway is performed in several stages, each of which is the independent investment project. The sequence of project implementation is defined in particular on the basis of the most difficult sections of the existing federal Road M-10 Russia and need of increase of traffic capacity of Moscow – St. Petersburg Transportation Corridor.
Now two sections of M-11 are constructed and put into operation on a paid basis: 15 – 58 km in Khimki and Solnechnogorsk districts of the Moscow region bypassing Khimki, and also 258 - 334 km in Torzhok, Spirovsky and Vyshnevolotsky districts of Tver region bypassing Vyshny Volochyok.
The State Company Avtodor was established in 2009. The company’s goal is to develop a network of express toll roads. The asset management of the State Company embraces such highways as M-1 Belarus 450 km long, M-4 Don (1716th km), M-3 Ukraine (432th km) and new highway M-11 Moscow - St. Petersburg. The state company performs the building complex of these highways.
Avtodor is the executive company in charge of building the highway Moscow – St. Petersburg and construction of the Central ring highway (Central Ring Road) in Moscow region. The State company uses mechanisms of public-private partnership (PPP) to implement all large projects.
Two Capitals Highway, LLC was created with participation VTB Capital, VINCI Highways (France). In April 2014, the company won an open competitive tender with the right to conclude a concessionary agreement on financing, building and operation on a paid basis of Moscow - St. Petersburg highway at sections 543 - 646 km and 646 – 684 km. The concessionary agreement between the Government of the Russian Federation on whose behalf acts the State Company Russian Highways (SC Avtodor) and Two Capitals Highway, LLC for the term of 27 years was signed on November 18, 2014.
General Contractor – ICA Astaldi-IC Ictas WHSD Insaat Anonim Sirketi ("Içtaş Astaldi") – is a joint venture of Astaldi (Italy) and Içtaş Inşaat (Turkey). ICA is the expert in the area of world-class infrastructure facilities construction. The company is listed among the first hundred in the Top International Contractors Rating (by Engineering News Record). Presently, the Company operates in Italy, Central Europe, Russia, Turkey, Middle East, Africa, Latin and North America. In St. Petersburg, the Company took part in the construction of a new Pulkovo Airport terminal and in Pulkovo-1 Airport reconstruction. Today, the Company is the General Contractor of the construction project for the central section of Western High-Speed Diameter.
Ekaterina Osadchaya
Two capitals highway, LLC
Telephone: 8 (812) 383 90 67 (ext. 159)
Mobile: +7 921 894 79 77