The Northern latitudinal railway project, initiated by the "Ural Industrial - Ural Polar" Corporation is among the most structured and effective public-private partnership (PPP) projects.
That is the conclusion which was reached at the 7th annual forum "The Transport Infrastructure of Russia", held under the auspices of the Adam Smith Institute.
The Forum was attended by the representatives of leading institutions engaged in activities of the transport sector, as well as the heads of the governmental subdivisions of the Russian Federation, the deputies of the State Duma and other experts.
Boris Kirillov, the Deputy CEO of the "Ural Industrial - Ural Polar" Corporation drew particular attention to the organizational and financial mechanisms of the Northern latitudinal railway project in his speech. The formation of the Northern latitudinal railway (Ob - Salekhard - Nadym - Pangody - Noviy Urengoi - Korotchaevo) achieved a significant reduction in the budgetary cost of the "Ural Industrial - Ural Polar" project as a whole, he noted.
In the original version, announced in the Investment Fund of the Russian Federation, the project involved the use of funds in the amount of 311 billion rubles, where 223 billion rubles of the budgetary funds. The new version of the Northern latitudinal railway project "Ob - Salekhard - Nadym - Pangody - New Urengoi - Korotchaevo" required in the forecast the amount of 174.5 billion rubles for the construction, and out of this amount only 46.5 billion rubles of the budgetary funds allocated for the construction of the bridge across the river Ob. Thus, creates a budget savings of over than 176 billion rubles.
The extra-budgetary funds provide the main source of financing of the Northern latitudinal railway projects, in the amount confirmed by the following participants of the project: JSC "Urals Industrial - Urals Polar Corporation ", the Government of the Yamalo-Nenetsky Autonomous District, the Russian Railways and Gazprom - as well as the budgetary funds in the amount prescribed by the Federal Target Program "Development of the Transport System of Russia (2010-2015)."
The formation of the Northern latitudinal railway project will be done by the Special project company (SPC), created by the "Ural Industrial - Ural Polar" Corporation on the basis of the Yamal Railway Company. The shareholders of the SPC are will be the Corporation, Gazprom and the Russian Railways.
On the 9th of November, 2010 the Federal Agency for Railway Transport together with the Corporation, the Administration of the Yamalo-Nenetsky Autonomous District, Gazprom and the Russian Railways signed an Agreement of Intent to implement the "Ural Industrial - Ural Polar" comprehensive investment project with the development of the Northern latitudinal railway. The said document envisages the procedure and financial arrangements for the development of the Northern latitudinal variation.
In pursuance of this Agreement, the Corporation has taken measures to identify the general contractor to build a bridge across the river Nadym - one of the important elements of the Northern latitudinal railway project. The construction will begin this summer.
The further construction will be carried out in accordance with the investment schedule of the participants.