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Belkomur railroad will total 330bn RUB together with loans

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Construction of Belkomur railway, which, as projected, will pass from the White Sea through Komi to Urals, is estimated at 330bn RUB, taking into account loaned assets, as reported by CEO of Belkomur Vladimir Shchelokov.

“The project net cost is 251,5bn RUB as of 2016. If loaned funds are taken into consideration, then almost 330bn RUB. Starting with 2014 we initiated PPP and intend to implement the project by concession”, – Shchelokov said.

The Chinese investors are interested in project and ready to take part in it. Then negotiations in  VEB were held on hedging and other financing issues.

Construction is expected  to take 8 years. If it starts in 2018, then since 2023 onwards the road will be available for  cargo transit. By 2034, it will reach design capacities — 35 mtpa of cargo.

Project for the construction of Belkomur railway stipulates for the reduction of cargo transit length from Urals and Siberia to seaports of Arkhangelsk by 850 km. It will be of strategic importance to Russia, as will connect Urals and Komi to warm water ports of Arkhangelsk, Murmansk and Northern Europe.

The investor is Poly Group’s subsidiary Poly International Holding Co., is ready to invest 5,5bn USD.

Source: /tass.ru/

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