LLC Northern Capital Highway, a St. Petersburg-based road builder, signed a 59 billion-ruble ($1,7 billion) loan agreement to construct part of a highway in Russia’s second-biggest city.
Vnesheconombank, Russia’s state-development bank, will provide 25 billion rubles of the loan, while VTB Group and Gazprombank will provide 23 billion rubles and Eurasian Development Bank will provide 3 billion rubles.
Northern Capital Highway is venture made up of VTB Capital, Gazprombank, Astaldi SpA (AST), IC Ictas Insaat ve Ticaret AS, and Mega Yapi Insaat ve Ticaret Ltd. It won a a city-sponsored tender to build a 11.4-kilometer (7-mile) section of a new road connecting city’s north and south sections by 2014. The full length of the high-speed road is 46.6 kilometers.
Russian state and local St. Petersburg budgets will pay for the remainder of the project, which has a total cost of about 212 billion rubles. Nothern Capital will manage and collect fees on the road for 30 years.
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