News
Kachkin & Partners has performed as a legal advisor to the first PPP project in the transport sector of the Far East, the total cost of the project is more than 40 billion rubles
The concession agreement on construction and operation of the road «Bypass of Khabarovsk 13 km — 42 km» between the Khabarovsk Territory in the person of the Ministry of Economic Development and «Regional Concession Company», LLC within the VIS Construction group (VIS CG) has been signed.
The connection of three federal highways (A-370 «Ussuri», R-297 «Amur» and A-375 «Vostok») within the framework of the project «Bypass of Khabarovsk» will be possible. It is assumed that the toll road will not only relieve the city centre from the pressure of transit traffic, but also will be a starting point for the construction of new transportation system with People’s Republic of China.
One of the market leaders in the field of the infrastructure projects financing in Russia – Gazprombank — has performed as the financial agent in this project. Gazprombank is planning to provide the funding of RCC LLC for an overall amount of 10 billion rubles. The financial closing of the transaction will take place in 2017.
Kachkin & Partners has implemented a comprehensive legal support of the concessionary participation in this Private-Public Partnership (PPP) project which is the first for the Far East transport sector.
The legal support of the project by Kachkin and Partners covered assistance in the preparation of the competitive bid, participation in negotiations with the concession provider at the stage of the agreement conclusion and support of the commercial closing and also advising the private investor on various legal issues related to the implementation of the project (including analysis of tax risks of the project, examination of the legal status of land plots entering the right of way of the road construction and etc.).
Denis Kachkin, Managing Partner, Head of Infrastructure and PPP Practice of Kachkin and Partners, has noted: “Signing of this concession agreement can be confidently called a milestone event: according to results of long and effective team work the creation of the large-scale project of strategic importance for the Russian transport infrastructure in general has become feasible. We are glad to be involved into the intensive development of the Far East road-transport sector and we are willing to continue our cooperation with all the agreement parties for the implementation of new initiatives in the field of PPP”.
Managing Partner
Head of Infrastructure and PPP Practice
Head of Joint Department at HSE University in Saint Petersburg
Attorney
Managing Partner
Head of Infrastructure and PPP Practice
Head of Joint Department at HSE University in Saint Petersburg
Attorney