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Government panel has approved the economic model for the Northern Sea Route

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Government panel, chaired by Arkadiy Dvorkovich, Russian Vice Premier, has approved economic model of the Northern Sea Route.

As reported, the overall cost of building the new railway Obskaya — Nadym — Pangody 460 km long is estimated at 130.5bn RUB.

The project is of national standing: its execution will facilitate social and economic development of the Russian Arctic. The Yamal-Nenets Autonomous District is the place of Gazprom’s key fields, which will provide for the major Russian natural gas production over time. Their effective development can be ensured by means of adequate transport infrastructure.

Russia is expected to be a concessioner, while the Russian Railways’ subsidiary will be the concession holder.

Project will be implemented with private investment attraction based on concession. Key players (Russian Railways, Gazprom and the YaNAD) will finance facilities of the existing railway infrastructure, while the construction of new facilities will be carried out by the concessioner.

As follows from the agreement, Gazprom will create the dedicated subsidiary to ensure the completion of construction and commissioning of its railroad track Nadym — Pangody (112 km).

Source: /morvesti.ru/

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