On June 1, 2017, as part of the annual St. Petersburg Economic Forum, an official ceremony of signing the Memorandum of Intent between the Federal Road Agency (Rosavtodor) and ICA Construction (IC ICTAS - ASTALDI) was held.
ICA Construction is planning to change its role in the Russian market from a general construction contractor to an infrastructure company dealing with the entire life cycle of a PPP project, including initiating a project, developing a financial model, participation in the tender phase of the project, attracting its own and borrowed financing, design, construction and subsequent operation of the project.
Taking into account the decision of the Government of the Russian Federation on the direction of proceeds from payment for damages caused to motor roads of public use of federal significance by vehicles with an authorized maximum mass exceeding 12 tons in the form of other interbudgetary transfers to the budgets of constituent entities of the Russian Federation for the implementation of regional PPP projects, ICA Construction expresses its intention to participate in tender procedures for the purpose of financing and implementation of these projects.
The main subject of the Memorandum is bilateral interaction on investment in the development of the road infrastructure of the Russian Federation on the principles of public-private partnership.
For example, it is known that ICA Construction together with RDIF are planning to participate in the second stage of the tender for the right to conclude a concession agreement on the construction and toll-based operation of a bridge across the river Ob in the alignment of Ippodromskaya street of the city of Novosibirsk. The amount of private investments in this project will be about 10 billion rubles, with a total construction cost of 35 billion rubles.
ICA Construction also intends to hold mutual consultations with the Federal Road Agency on financial modeling and risk distribution related to the implementation of these projects, which will improve the degree of project preparation, and also reduce the share of federal budget participation in the structure of their financing.
The Parties of the Memorandum are sure of the correctness of the chosen direction on the transition from the government orders to public-private partnership and believe that extra-budgetary investments can become an alternative source of funds for creating a new infrastructure in the country.
For the reference: ICA Construction was founded in 2011 and it is a joint venture of two major international companies: the Turkish IC Ictas Insaat A.S. and Italian Astaldi S.p.A (182nd place and 53rd place in the rating of the leading construction companies of the world).
These companies are multi-profile construction holdings that have been implementing large investment projects for more than 50 years in such sectors as transport infrastructure, energy, water supply and renewable energy, civil and industrial construction.
The activities are carried out in 6 macro-regions: Italy, Central Europe (Poland and Romania), Russia and Turkey, the Middle East (Saudi Arabia, United Arab Emirates, Oman, Qatar), Africa (Algeria), Latin America (Venezuela, Peru, Chile) and North America (Canada, USA).
In Russia, the Company implemented 2 projects (construction of Pulkovo Airport and construction of the central section of Western High-Speed Diameter highway). A project for the construction of Sections 7 and 8 of M-11 Moscow - Saint Petersburg high-speed highway is ongoing.
Press of ICAConstruction
