M-11 Moscow — Saint Petersburg, Stages 7-8

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Project Financing Introduction

Master of Project Management Degree Program

Assessment project: “M-11 Moscow — Saint Petersburg, Stages 7-8”.

Student Name: Valeriia Vedeniapina

Instructor: Liu Ersi, prof., Ph. D

Date:                 2017/05/26

Introduction

As an investment project, I'll use a construction Highway Moscow - St. Petersburg (M-11). The total length of the highway will be about 700 km (684 km). This is one of the first large toll roads in Russia. Starting from Moscow, the route will pass through the Moscow region (90 km), the Tver region (253 km), the Novgorod region (233 km) and the Leningrad region (75 km) to St. Petersburg. The project cost is 152,8 billion rubles, of which 15,96 billion rubles should be invested by the performer. Commissioning of a highway is planned in 2018. The construction will take place in eight stages.

For a better understanding of the project, consider a separate stage of the construction of M-11, namely, M-11 “Moscow - St. Petersburg”, 7-8 stages. The highway section passes through the territory of St. Petersburg, Leningrad and Novgorod regions.

In the Leningrad region, the site runs through the Tosno district, as well as near the settlements of Annolovo, Pavlovsk, and Pushkin. On the site within the limits of St. Petersburg highways pass through the territory of the Moscow and Pushkin districts, on the Novgorod region - through the Novgorod and Chudovo districts.

Key information about the project

* the first three years of toll-based operation

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Figure 1. M-11 “Moscow - St. Petersburg”

Goals and objectives of the project

The project is included in the Program of Activities of the “Avtodor” state company for a long-term period

On a nationwide scale, the project is implemented as part of the ongoing policy to create the necessary conditions for economic growth, improve the competitiveness of the economy and improve the quality of life of the population through the development of a highway network and highways that will provide the required speed, reliability, security and affordability for consumers.

The program of activities of the “Avtodor” state company for the long-term period (2010 - 2020) provides for the solution of the following tasks:

• Ensuring the construction and reconstruction of highways connecting Moscow and St. Petersburg, the central regions of Russia with the seaports of the Baltic and Black Seas, as well as providing access to the road network of the Republic of Belarus and Ukraine;
• Formation of a network of toll sections of the roads, including the creation of a single integrated system of traffic management and tariff collection;
• Involvement of the extra-budgetary investments in the design, construction, and reconstruction of roads on the basis of public-private partnership mechanisms;
• Phased development of new international road routes integrated into the network of European and Eurasian transport corridors;
• Ensuring consistency of the transport and operational condition of highways;
• Develop a quality of road works and the durability of road infrastructure facilities through the implementation of innovative programs and applications of new more effective forms of contractual relations;
• Improving road safety;
• Improving the quality of services provided by “Avtodor”, including through the creation of a network of multifunctional road service zones;
• Ensuring the introduction of new effective forms of road management.

The relevance of the construction of the highway “Moscow-St. Petersburg”

The need to build a new toll highway M-11 "Moscow - St. Petersburg" is determined by the following factors:

• Forward-looking highway will be used for communication with large transport hubs - St. Petersburg, as well as the seaports of Scandinavia;
• The existing highway M-10 “Russia”, for the most part, has the insufficient number of lanes: on the approach to Moscow - 6 lanes, on the main route - from 3 to 4, and in some sections - only 2 lanes. Approaches to Moscow and St. Petersburg M-10 “Russia” has exhausted its capacity. This leads to the formation of congestion and, as a result, an unreasonable increase in transport costs and restraining the development of the economy of regions;
• Passage of the highway M-10 “Russia” through populated centers results in lower speed and, as a result, to transportation and economic losses; environmental degradation in populated centers; reduce road safety;
• The cost of building of bypass roads is compatible with the cost of building a new road;
• M-10 “Russia” by its parameters, such as the radius of horizontal curve, longitudinal gradient, visibility distance, etc., does not meet the requirements of the roads of the 1st category;
• The need to support the existing federal routes in an appropriate transport-operational state throughout the life of the operation in order to provide users with an improved service infrastructure.

The significance of the project is: 

• In the implementation of an important element of the St. Petersburg transport hub, which allows withdrawing part of the traffic from the existing congested highway network;
• In its independent transport significance: it has the character of a main inter-regional highway, it starts and ends at the interchange with the existing federal highways (the 684-km Ring Road of St. Petersburg and the 543-km M-10). 

Concession agreement

General provisions

The subject is the duty of the concessionaire to create a road, and also to carry out its further exploitation on a paid basis.

The object is a highway, which includes the engineering structures of the transport infrastructure provided by the project documentation: track formation, garments, bridges, drainage, overpasses, tunnels, technical means of traffic management, toll stations, other road facilities.