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Capital Legal Services Advises Government of Khabarovsk Krai in First PPP in Transportation in Russia’s Far East

Capital Legal Services Advises Government of Khabarovsk Krai in First PPP in Transportation in Russia’s Far East

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Capital Legal Services has advised the Government of Khabarovsky Krai in Russia's Far East on the December 12, 2016 concession agreement signed in Khabarovsk between it and the Regional Concession Company – part of the VIS Construction Group.

According to Capital Legal Services, "this project is of strategic importance for Russia and involves construction, financing, and operation of the Khabarovsk Bypass road. Further development of the project will ensure a new transport route to the People's Republic of China and will provide access to the Bolshoi Ussuriisky island and from there to the Chinese road network."

The Capital Legal Services team, the firm reports, "provided support to the Government of Khabarovsk Krai at all stages of project development and execution, including developing the concept and tender documentation, preparing the draft concession agreement and negotiations with the potential concessionaire."

Under the terms of the concession agreement, the overall cost of the project is over RUB 40 billion, of which 25% is the private investor’s funds. It is expected that RUB 29 billion will be financed through a subsidy, including from the Russian Federal Road Agency using the funds collected through the Platon system.

"The history of using public-private partnership in our country started with the project on reconstruction of the Pulkovo Airport in St. Petersburg, where Capital Legal Services consulted the city," explained Pavel Karpunin, Partner at Capital Legal Services. "It is very gratifying to note that since then this mechanism has become popular throughout the country. This project is one of the strategic PPP projects being implemented with our support. We hope it will make a considerable contribution to the development of the Far East transport infrastructure."