Russian Railways to select Moscow–Kazan HSR designer on April 16

Russian Railways (RZD) announced an open tender for Moscow-Kazan HSR design, the railway monopolist informed. The tender will be held on April 16. Initial (maximum) contract price is RUB20.79 bn less VAT. The contract provides, in 2015-2016, for surveys, land planning and marking, аnd development of design documentation. The project contemplates high localisation of production (at least 80%), creation of over 370,000 new jobs, and SME development in the regions where the line will run. “Investments will strongly support Russian industry, primarily the metallurgy sector (rails and steelwork), mechanical engineering, construction materials sector, and other industries”, Russian Railways say. The main line will be operational in 2018. If the project is approved, the monopolist warrants to find consessioners to construct three HSR sections: Vladimir-Nizhny Novgorod, Nizhny Novgorod-Cheboksary and Cheboksary-Kazan, and build the first section from Moscow to Vladimir at its own cost. Total project costs for Russian Railways are estimated at RUB384.1 bn, and RUB684.4 bn for three consessioners. No financial model, however, has been developed yet. The monopolist counts on RUB150 bn from the Sovereign Wealth Fund, which decision to allocate has not been made yet. Besides, Russian Railways needs non-repayable money (about RUB380 bn), but the Government cannot allocate it so far. More information is available at: http://www.kommersant.ru/doc/2687875