Moscow-Minsk M1 Section 1

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The project, also known as Moscow-Minsk Odintsovo Bypass, involved the construction of a 19 km highway connecting the Moscow Ring Road with the Moscow Minsk M1 Highway, near Odintsovo on the outskirts of Moscow. It was the first stage of Pan European transportation corridor 2 (Berlin-Minsk-Moscow-Nizhny Novgorod). The project involved the section from 15 km to 56 km and aimed to ease congestion on the latter. The project was awarded on 30 year BOT (design, build, finance, operate and maintain basis) to OAO Glavnaya Doroga, a consortium led by Russian investment firm Leader together with European developers Alpine (Austria), Brisa (Portugal) and FCC (Spain), as well as Russian construction firm Stroygazconsulting in 2009. Leader was a subsidiary of Gaz-prom¬bank. There was no information on the stake of each sponsor in the project. The project company was to recover investment through toll fees. Construction was to take two years. The total cost of the project amounted to R25.6 billion (US$850 million). The project reached financial closure in April 2010 and bypass became the second Russian road PPP to reach financial close. The project was financed with state infrastructure fund, government-backed corporate infrastructure bonds, and project equity. The Russian government guaranteed R11 billion ($350 million). The M1 Moscow-Minsk Odintsovo Bypass had no bank debt at all. The bond issue guaranteed by the Russian government was instrumental in securing the close. These bonds would be linked to inflation making them particularly attractive to long-term investors such as pension funds and insurers. In October 2011, construction work started. The contractor company, Mostotrest, signed a US$ 1.65billion (RUB48.48 billion) contract with the project consortium for the construction of the 15-58km segment. The expected duration of the construction was three years