China has agreed to provide a RUB 400 billion (USD 6 billion) for the Moscow-Kazan high speed rail project, Russian Railways announced.
Under this agreement, China will lend RUB 250 billion (USD 3.8 billion) for the Moscow-Nizhny Novgorod section and RUB 150 billion (USD 2.2 billion) for Nizhny Novgorod-Kazan section. China also will offer RUB 53 billion (USD 800 million) in equity financing, the company says.
The project will be implemented as a PPP, unde a concession agreement, with key measures agreed by the end of the year.
In April, Russian Railways reviewed Moscow – Kazan HSR cost at RUB 1.2 trillion (USD 18 billion), from the initial estimation of RUB 1 trillion (USD 15 billion). RZD’s first Vice President Alexander Misharin sent a letter to the Ministry of Transport requesting RUB 643 billion (USD 9.6 billion) from the Government. The initial funding request was RUB 505 billion (USD 7.58 billion).
According to the Transport Minister Maxim Sokolov, the construction of the line might be launched in 2017.
In May 2015, a memorandum of cooperation on the construction of the high-speed line was signed by China and Russia.
The length of Moscow – Kazan HSR is 770 km, designed for a maximum speed of 400 kmph.
In addition, Russian Government has approved in January the schedule for the tender on rolling stock supply tender for Moscow-Kazan HSR. According to the Government, the tender should be launced in December 2016. According to the schedule, the manufacture of the rolling stock is to be commissioned in December 2019, and at least 70 – 80% of the components have to be localized (in Russia).
The RZD First Vice President Alexander Misharin said earlier that 29 trains will be initially bought for the project. Further on up to 100 high-speed trains will be acquired and operated in Russia.
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