VEB.RF’s Supervisory Board has approved VEB.RF’s involvement in financing the project to build four facilities of the Eastern Polygon as part of the integrated project for modernising the railway infrastructure of the Baikal-Amur and Trans-Siberian Mainlines (stage 3) launched in 2024.
It is intended that VEB.RF will provide financing of up to 500 billion roubles in tranches of syndicated loans, and guarantees totaling 145 billion roubles.
The project aims to construct by the end of 2032 alternate facilities in the tightest and most congested sections of the Baikal-Amur Mainline: the single-track parts of Severomuisky, Kodarsky and Kuznetsovsky tunnels and the bridge over the Amur River. The second Severomuisky tunnel with a length of more than 15 kilometres will be the biggest artificial facility built under the project. The first Severomuisky tunnel opened in 2003 is the longest tunnel in Russia.
The project is implemented by the Bamtonnelstroi-Most Group using a new innovative mechanism, EPCF contracts concluded with Russian Railways. Upon the terms and conditions of the EPCF contracts, the general contractor is responsible for the design, construction and installation, commissioning works, and the purchase of specialised equipment including tunnelling machinery and equipment. The contractor itself shall raise the required amount of long-term financing. The EPCF contracts will allow the Russian Railways to minimise the load on its investment programme and release investment resources for other significant railway projects. The cost of works will be paid by the Russian Railways in instalments during ten years starting from the commissioning date.
VEB.RF has already provided advance payment guarantees for the project totalling 15 billion roubles. VEB.RF’s guarantee support allowed the general contractor to start design and preliminary works at construction sites and accelerated the procurement of tunnelling machinery and equipment.
Igor Shuvalov, Chairman of VEB.RF: “The railway infrastructure for the Baikal-Amur Mainline, being of strategic and high priority significance to the Russian economy, is created as instructed by the Russian President. The railway projects will be financed in partnership with commercial banks. The total amount of long-term syndicated loans will exceed 1 trillion roubles.
Developing the logistic transport infrastructure including the railway infrastructure is high on VEB.RF’s list of priorities. The facilities created will help to re-route the export cargo traffic towards friendly countries. The project will increase the capacity of the Baikal-Amur and Trans-Siberian Mainlines by 50% and create about 6,500 new jobs.”
The construction of four railway facilities for the Eastern Polygon using the EPCF contracts is provided for by the investment project data sheet for modernising the railway infrastructure of the Baikal-Amur and Trans-Siberian mainlines to increase the railway carrying capacity (stage 3) approved by the Russian Government in 2024. The project will lift existing infrastructure restrictions to re-direct the traffic of high-potential cargo to the Far East, develop the railway infrastructure and increase the carrying capacity of the Baikal-Amur and Trans-Siberian mainlines up to 270 million tonnes by 2032.
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