It is reported that the European Bank for Reconstruction and Development recently agreed to consider funding road construction by the state run company Avtodor which needs USD 12.6 billion in non state money through 2019.
Mr Richard Wallis the EBRD spokesman in Moscow said under their memorandum of understanding, the bank which was created by international governments and financial institutions to transform former Communist economies, could contribute significant funding to Avtodor by issuing loans and buying its bonds.
He said that "We will help Avtodor prepare projects in a way that will allow them to attract money from any investors, including foreign commercial banks that signed up to the Equator Principles and international financial institutions."
The Equator Principles which have been adopted by more than 70 major global banks including HSBC and BNP Paribas and require that borrowers must comply with a set of environmental and social standards if they apply for financing.
The government has earmarked RUB 1 trillion in federal funding for Avtodor projects through 2019 and ordered it to raise another RUB 367 billion on the market.
Avtodor oversees construction of the controversial stretch of the Moscow to St Petersburg toll highway which brought destruction to large swathes of the Khimki forest the only green spot in a sprawling industrial and residential neighborhood and drew strong popular protests that delayed construction.
It appeared from the memorandum that the EBRD which is not involved in the contentious construction project would advise against this type of discord for any further Avtodor plans.
Mr Thomas Maier the bank managing director for infrastructure said in a statement that announced the agreement with Avtodor that an approach that includes a major outreach to key stakeholders whose interests could be affected by future motorway projects is the only way forward.
Avtodor other current projects include the reconstruction of two motorways leading to southern Russia and Belarus respectively known as M4 and M1. The company could take over the maintenance of the M3 highway to Ukraine by the end of this year.
Mr Sergei Kelbakh Avtodor acting chief executive said that the company was seeking funding from the EBRD to build the other stretches of the Moscow-St Petersburg highway which is scheduled to be completed by 2018 and estimated to cost at least RUB 500 billion.
(Sourced from www.themoscowtimes.com)
