Alexander Misharin: more than 500 Russian companies expressed their interest in working on HSR constructionGovernor of Chelyabinsk Region Boris Dubrovsky and Governor of Sverdlovsk Region Evgeny Kuivashev joined the Association of Constituent Entities and Cities of Russia connected by a network of high-speed transport service. An appropriate declaration was signed on July 12 of 2016 within the framework of INNOPROM 2016. The Association was established on the initiative of the heads of the RF constituent entities for the purpose of development of high-speed rail service in Russia and coordination of activities of the heads of RF constituent entities and leaders of local government agencies during implementation of HSR construction projects. “I am confident that this measure will lay the foundation for development of regions for many generations to come,” said CEO of JSC “High-Speed Rail Lines” Alexander Misharin. “More than 500 Russian companies expressed their interest in working on HSR creation; ca 50 of them will become suppliers of components for high-speed trains. The Association will create a business platform for discussing all matters involving deliveries and development of production and personnel. High-speed rail lines constitute a project of development of regions; and it is very important that the Governors of Chelyabinsk and Sverdlovsk Regions put efforts in the creation of the Ural HSR “Chelyabinsk — Yekaterinburg,” added Misharin. “HSR will facilitate development of Russian high-tech products that will be in demand on the market immediately. We do not need to substitute imported goods — we will have our own products! At the INNOPROM 2016 exhibition, the Government of Chelyabinsk Region, the Federal Center of Project Financing (VEB Group) and the Government of Sverdlovsk Region signed a trilateral agreement on strategic cooperation on implementation of the Chelyabinsk — Yekaterinburg HSR.” “Development of the HSR project is of utmost importance to Chelyabinsk Region, since its implementation will incorporate our region into the new transport logistics of Moscow — Beijing,” said Governor of Chelyabinsk Region Boris Dubrovsky. The project of construction of the high-speed rail line connecting the capitals of two Ural regions with the population of 1M people is included in the strategy of socioeconomic development until 2020. Specialists of FCPF with participation of Infrastructure Economics Centre completed preliminary elaboration of the project’s concept. Very tentatively, the high-speed rail construction is forecasted to have significant agglomerate and socioeconomic effects. The project is being prepared by the special purpose vehicle “Ural High-Speed Rail Line” established by Chelyabinsk Region and FCPF. Cooperation between the regions and FCPF on the project implementation calls for participation of the parties in the capital stock of the special purpose vehicle. At that, Chelyabinsk and Sverdlovsk Regions resolve land-related, technical and organizational matters in their territories, which is necessary for front-end engineering and design, and the Federal Center of Project Financing provides expert support and assistance with financing. “Development of interregional transport service, including high-speed, is one of the promising areas of development of the constituent entities,” said Governor of Sverdlovsk Region Evgeny Kuvaishev. “Today, against the backdrop of global competition between the regions, the winner is the one that knows how to create the most favorable conditions both for residents and investors. In this regard, improvement of railway service is a significant contribution into the strengthening of competitive advantages of territories. This offers the possibility of fast delivery of cargos, enhanced mobility of the population, and improved quality of life. Today, conclusion of the agreement confirms the readiness of the regions for joint work on the project that can become a driver of economic development for several territories.” As a reminder to our readers, the Chelyabinsk — Yekaterinburg HSR project is included in the first stage of the JSCo RZD Program of organization of rapid and high-speed railway service in the Russian Federation for a period until 2020. According to preliminary studies, the high-speed line will span more than 200 km, and the time of travel between the two cities will be around an hour. Creation of a one-hour connection between Chelyabinsk and Yekaterinburg will allow building an agglomeration of the Ural Region with the population exceeding three million people — the third largest agglomeration in Russia. According to estimates, the HSR construction and operation will result in compound GDP growth exceeding 1 tn rubles until 2030. Such agglomeration served by two international airports, two of the region’s largest railway hubs, unique recreational possibilities and personnel potential of the major defense and industrial, science and production centers of the Ural region, will create a totally new field of investment opportunities. The rail is slated for operation in late 2021. The line construction will be funded by a private investor (concessioner) and attracted financing; investments will be repaid at the phase of line operation through generated effects of project implementation.
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