- The project of WHSD construction is being implemented on the basis of Public Private Partnership (PPP) principles in accordance with Saint Petersburg Law No 627-100 of 12-Dec-06 “Regarding participation by City of Saint Petersburg in Public Private Partnerships”.
- NCH won the competitive contract and was empowered to make a contract for the Construction and Operation of Western High Speed Diameter Highway on the Basis of Public-Private Partnership.
- 23 December, 2011 the PPPA of 30-years duration is concluded between the Partner, the City and WHSD, OJSC
Parties of the Agreement
- On 20 December, 2012 in Moscow the Act of financial close and the update edition of Construction and Operation of Western High Speed Diameter Highway on the Basis of Public-Private Partnership Agreement were signed as well as the EPC Contract with ICA Astaldi-IC Içtaş WHSD Inşaat Anonim Şirketi (association of Astaldi, IC Içtaş Inşaat and Mega Yapi Companies) (hereafter – General Subcontractor) and a number of documents necessary for funding receipt including an updated edition of the Facility Agreement, Direct Agreement between the City, Partner, WHSD, OJSC, and General Subcontractor, other financial documents.
- Project of Construction and Operation of Western High Speed Diameter is the greatest PPP Road Deal in the World.
- The Project is honored with the outstanding international economic publications awards.
See in detail: Awards
- is a mutually beneficial cooperation of the City of St.Petersburg and Russian or foreign Legal entity, Natural person or Legal entities operating jointly as a general partnership in execution of socially significant Projects aimed at development of Education, Public Health, Social Services, Physical training, Sport, Culture, Tourism, Transport and Engineering Infrastructures, Communication Services and telecommunication Infrastructure in St.Petersburg which is being implemented by means of signing and executing Agreements inter alia concessions. Definition from St.Petersburg Law “About the City of St.Petersburg cooperation in Public-Private Partnerships”.
Terms of the Agreement
In accordance with the PPPA NCH attracts funding for the Construction of the Central Part of Western High Speed Diameter Highway and acquires the right of Operation of the complete WHSD under the 30 years Concession.
The Terms of the Agreement contain a minimal operation income guarantee by the Government of Saint-Petersburg in amount of 9,67 milliard rubles per year. If the annual receipts exceed this sum NCH will pay out to the Government of Saint-Petersburg 90% of the remainder.