Chuvash Roads Modernization Project

completed

The proposed investment is a local currency loan of RUR1.3 billion ($49 million equivalent) to Chuvashavtodor, a road development enterprise owned by the Chuvash Republic (the “Republic” or “Chuvashia”). The loan will help finance the first stage of the Republic’s capital expenditures program on roads. The program involves:- the construction or upgrading of about 550 km of rural roads to connect some 54,000 people in 350 isolated rural communities to the all-weather road network and - the rehabilitation of priority sections of the major road network that are presently in poor condition (the “Project”). The Department of Automobile Roads (DAR) of the Ministry of Town Planning and Public Infrastructure is managing the program by awarding contracts to project designers and construction/rehabilitation contractors through tender procedures. Contracts to design more than 200 rural road sub-projects of 0,2-12 km each have been already awarded to 12 companies. After completion of the design stage, DAR will hold a second round of bidding to award road construction and rehabilitation contracts. The loan will be provided to state company Chuvashavtodor and will be fully guaranteed by the Chuvash Republic. This will be the second subnational finance investment in Chuvashia.