Central Ring Road: State-owned company “Avtodor” held public discussions of the tender documentation draft of the first start-up Central Ring Road facilities

ART DE LEX Law Firm lawyers participated in the public discussion of the tender documentation draft of the project “Construction, maintenance, repair and capital repair of the Central Ring Road (CRR) of Moscow region, start-up facilities  №1, the first construction lot”, which took place on October 8-th, 2013.

The customer and the organizer of the tender on conclusion of the long-term investment agreement is the State-owned company “Avtodor”. The financing of the project is provided by the Program of the long-term activity of the State-owned company “Avtodor” (2010-2020). The total value of construction costs of the project is 52,41 billion roubles, whereof 45,64 billion roubles – state financing, and 6,77 billion roubles – investments of the contractor. The terms of the tender are the following: the tender is expected to be announced on the 23-25-th of October, the term for applications` filing – one month, the expected term for a long-term investment agreement conclusion – the end of December 2013. Construction works and putting into operation should be completed in the year 2018. The duration of the long term investment agreement is 23 years, during which the investments of the contractor are assumed to be returned in the form of investment payment. During the term of the investment agreement the contractor will be conducting maintenance of the motor road, current and capital repair.

5 lots of CRR are expected to be constructed in total, the tenders for the 3-rd, 4-th, 5-th start-up facilities should be announced at the beginning of the year 2014. Two tenders will be conducted for the conclusion of long-term investment agreements and another two – for conclusion of concession agreements.

According to Mr. Nosov, Deputy Chairman of the Executive Board on the investment policy, the project is extremely important from the economical and social point of view not only for the Moscow region, but for the whole Central Federal District, and in connection with this the quality and promptitude of the contractor will be under special control.

During the public discussion the attendees brought up the issues of joint participation of the strategic partners in the tender, cooperation between the contractor and the operator of the electronic fee collection system, the procedure of financing of construction and exploitation works by the parties to the investment agreement and other issues. Further the attendees discussed the opportunity of the foreign companies` participation in the tender. The organizers generally expressed positive attitude to the major international construction companies` participation considering their diverse experience and advance technology.