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TSM to Build Losevo and Pavlovsk Bypass on M-4 «Don» Federal Highway

13/12/16  

Transstroymekhanizatsiya (TSM), a member of the Mostotrest Group, has won the public two-step tender for the right to enter into a long-term investment contract for the construction, maintenance, repair, overhaul and toll-based operation of the km 633 – km 715 segment (Losevo and Pavlovsk Bypass) of M-4 «Don» Federal Highway in the Voronezh region.

The public two-step online tender for the right to enter into the long-term investment contract was announced on 24 August 2016. The customer is the State Company «Avtodor». Initial contract value: RUB62.37 billion.

TSM's bid contained the following terms meeting the tender criteria: cost of construction: RUB62.266 billion (including VAT); base annual operation fee: RUB17.851 billion (excluding VAT). The tender committee awarded the contract based on the assessment of bids against the key tender criteria, including contractor expertise and competences.

According to the tender process schedule, signing of the long-term investment contract between the State Company «Avtodor» and TSM is expected before 26 December 2016. Construction of the project is to be completed in 2020. The total duration of the contract (including construction and operation) is 24 years.

As part of the project, TSM will build a new Category 1B four-lane segment of the M-4 «Don» Highway, to run through the Bobrov, Pavlovsk and Verkhny Mamon districts of the Voronezh region. Projected traffic in the first five years of operation: 10,000 – 12, 000 vehicles/day.

The total length of the highway segment will be 85.17 km, including a new segment of 69.44 km and an existing 15.73 km segment to be upgraded. A total of 35 bridges and overpasses, as well as 5 split-level interchanges will be built and/or rehabilitated. The new segment (km 633 - km 702) will include 28 new bridges and overpasses, 2 traffic interchanges (at km 634 and km 673), and 2 toll-collection stations. The upgrade of the existing segment (km 702 - km 718.2 (corresponds to km 715 km of M-4 «Don»)) will include an upgrade of road pavement to regulatory standards, replacement of existing bridge spans, repair and replacement of existing road facilities/amenities (traffic signs, markings, barrier fencing and noise screens). In addition, the project envisages construction of a Category II road with the length of 8.82 km, to offer an alternative route following the launch of toll-based operation of the new segment.

The rationale behind the construction of a new segment of the M-4 «Don» Federal Highway is the current mismatch between traffic density and the existing segment's operating metrics. In addition, the existing road currently runs through residential areas, increasing accident rates, traffic density and the pollution effect on the environment and human health.

The new segment of the M-4 «Don» Highway (Losevo and Pavlovsk Bypass) will remove transit traffic from the settlements, reduce negative impact on the environment by relieving street traffic, improve road safety and accelerate freight and passenger flows. Going forward, the project aims to increase competitiveness of the Russian transport system and boost the country's transit capacity.

By the Russian Federation Government Resolution 62, dated 24 December 1991, the M-4 «Don» Federal Highway was included in the List of Primary Russian Federal Highways. The total length of the M-4 «Don» Highway is 1,517 km. The core segment of the route from Moscow to Krasnodar is part of European Route E115. The segment from Krasnodar to Dzhubga constitutes Route E592; the segment from Dzhubga to Novorossiysk is part of Route E97. In addition, the M-4 Highway constitutes a segment of European Route E50 (from the intersection with the M19 at Novoshakhtinsk to the fork with the M29 at Pavlovsk. The M-4 «Don» Highway is in trust management by the State Company «Avtodor» since May 2010.

NOTES TO EDITORS

Transstroymekhanizatsiya (ÒSÌ) is a PJSC Mostotrest subsidiary. The company is engaged in construction and reconstruction of transport infrastructure, such as roads and airports. TSM operates in the Central, Southern and Far Eastern federal districts of Russia, is a key contractor for the construction of segments of the Moscow – Saint Petersburg Highway and reconstruction of the M-11 «Narva» Highway, is currently implementing the Sheremetyevo, Ufa, Rostov-on-Don, Nizhniy Novgorod, Khabarovsk and Norilsk reconstruction projects, as well as construction and reconstruction of the M-4 «Don», M-9 «Baltic» and M-10 «Russia» highways.

Mostotrest is a major, diversified infrastructure construction company, with an established presence in all core and related market segments, and a participant in Russia’s first public-private partnership projects. According to EMBS Group, an independent industry consultancy, in 2015 Mostotrest held a 13.9% share of the total Russian transport infrastructure construction market.

Mostotrest’s core competences include construction and reconstruction of bridges, roads and other transport infrastructure facilities; provision of road maintenance, repair and operating services. In 2012, Mostotrest also entered a new segment: management of road concessions.

The company was established in 1930 as a developer of complex and oversized bridges.

Mostotrest is currently participating in the implementation of a number of complex transport infrastructure development projects, such as construction of the Section 4 (km 208 – km 258) and Section 6 (km 334 – km 543) of the M-11“Moscow – St Petersburg” Toll Highway, construction and reconstruction of segments of the M-4 “Don” highway, construction of Kerch Bridge.

Mostotrest Ownership Structure:

· 94.2%: OJSC TFK-Finance;

· 5.8%: free float.

For more detailed Company information, please visit www.mostotrest.ru