Three Regions’ Authorities & Large Enterprises to Work on Northern Latitudinal Railway

17 August 2012 (16:59)

A working team was set up at the end of the meeting dedicated to the Northern Latitudinal Railway Project. The team comprises the representatives of the executive branch from three regions: Tyumen Region, Khanty-Mansiysky Autonomous Region, and Yamalo-Nenetsky Autonomous Region as well as a number of officials from the Transport and the Economic Development Ministries, Russian Railways, OAO Gazprom, Novatec, Vnesheconombank, and heads of oil companies. The team will be headed by Governor of Yamalo-Nenetsky Autonomous Region Dmitri Kobylkin.

The meeting, chaired by Russia’s Transport Minister Maxim Sokolov, covered a discussion on the terms of a concession agreement that will facilitate the launch of the project, attract cheaper financing, and serve as a springboard for the exploration of the Yamal Peninsula. For banks, a concession agreement will serve as a guarantee for the payment.

The Director-General of OAO Development Corporation Alexander Beletsky said in the course of the meeting that the corporation had drawn up a number of options where either Yamalo-Nenetsky Autonomous Region on its own or three regions (Tyumen Region, Khanty-Mansiysky Autonomous Region, and Yamalo-Nenetsky Autonomous Region) can act as the concession grantor(s). Beletsky pointed out that the transport infrastructure, including the bridges, is described in the existing legislation as the assets pertaining to the concession agreement. The grantor will be given an opportunity to buy these assets after the agreement expires, and the only possible risk here is the shortage in grantee’s revenues.

During the meeting, the representatives of Gazprom, Yamal Railways, and Russian Railways emphasized the strategic importance of Northern Latitudinal Railway for both the region and the entire country, and stated once again that they were willing to join the project.

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