Extra $309 million to be allocated for construction of Moscow’s Central Ring Road due to delay

Extra $309 million to be allocated for construction of Moscow’s Central Ring Road due to delay
Photo: RBC

These funds are going to be given to concession participants who had lost profits.

The Accounts Chamber identified the need for allocating additional 20 billion rubles ($309 million) for a project on construction of the Moscow region’s Central Ring Road due to delay, reports RBC. The money is expected to be given to concession participants as compensation. The construction project owner is GK Avtodor.

The auditors’ report related to results of the inspection into the project on construction of the Central Ring Road states that road segments that had been expected to be delivered in 2014-2018 are going to be built not earlier than the fourth quarter of 2020 and the second quarter of 2021.

Due to the delay on the project, the government will have to pay the concession participants almost 20 billion rubles ($309 million) as compensation. 12.3 billion rubles ($190.2 million) out of this amount are additional investment expenditures by the concession participants due to cost increase of construction of the third and fourth start-up complexes by 5.41 ($83 million) and 6.87 billion ($106 million) rubles, respectively. Other 7.49 billion rubles ($115 million) are going to be given to the concession participants who had received less than it had been expected. In 2019-2020, the concession participants and the government expected to receive 22.4 billion rubles ($346.5 million) from the road usage.

In February, 2019, it was reported that of December 1, the operational readiness of the Central Ring Road had been 60 per cent in some spots.

The Central Ring Road is a new ringway around Moscow with a length of 339-344 km. Most part of the ringway (251.3 km or 74.1 per cent) is going to be a toll road. The governmental project worth of 313.3 billion rubles ($4.8 billion) was approved in 2001. The General Contractor of the first section is Araz Agalarov’s Crocus International, of the fifth one - Koltsevaya magistral (ARKS Group), of the third one - Avtodorozhnaya stroitelnaya korporatsiya (GK Avtoban), of the fourth one - Yugo-vostochnaya magistral (consortium of GK Avtoban and RFPI).

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