«High-speed Railway»
Рус / Eng

Implementation Structure

Project implementation envisages the application of Life Circle Contract (hereinafter, LCC).

The contract will be concluded for the entire scope of works associated with the engineering-and-design, construction, financing and maintenance of the infrastructure asset.
 
The structure of a lifecycle contract envisages two main participants: the State (Concedent / Project Originator) and SPVSpecial Purpose Vehicle (Concessioner / Contractor).
The SPV (Concessioner) is a consortium of companies experienced in engineering-and-design, construction, and investment attraction for the implementation of projects involving the creation of high-speed rail lines on LCC principles, selected on the basis of a concession tender and having signed the respective concession (LCC) agreement.

Within the Project framework, it is the obligation of the SPV to create the railway infrastructure asset, which involves the attraction of privately-held and borrowed capital, the design and construction of the asset within predetermined performance characteristics, and the rendering to the state of the service of an operating rail line for the effective period of the respective LCC agreement.

State project financing envisages the issuance of a capital grant on the construction phase, the granting of guarantees and the payment of service fees throughout the operational process.