Kutuzovsky Northern bypass toll road

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A concession agreement was signed between OJSC New Concession Company (managed by Leader Management Company) and the Moscow City Government to construct a high-speed tool road 11km long from the Moscow International Business Centre to Molodogvardeyskaya Traffic Interchange. This is urgently needed in order to reduce the traffic load on Kutuzovsky Prospekt. Kutuzovsky Northern bypass project is the first privately financed PPP project in Russia. The Project will be implemented as a 40-year concession agreement. The concession fees to be paid into Moscow budget amount to 70m RUB (USD$1.1). The 11km road will consist of 4 lanes and will have daily traffic of up to 45 000 vehicles a day. It will have an exit to the Moscow Ring Road. OJSC New Concession Company plans to finance the project through 20% equity and issue project bonds to the pension funds it manages. The parent company CJSC “Leader” is the largest asset management company in Russia & CIS with over than $10 billion dollars under management. The project costs are expected to be in the region of $774m (RUB50billion) assuming the value of the Russian ruble doesn’t further deteriorate. http://www.herbertsmithfreehills.com/news/news20150122-hsf-advises-on-first-of-its-kind-moscow-infrasrtucure-project https://ijglobal.com/articles/94870/commercial-close-for-kutuzovsky-bypass-toll-road-ppp http://www.linklaters.com/News/LatestDeals/2015/Pages/Linklaters-advises-first-privately-financed-PPP-project-Russia.aspx