China will provide a 400 bln rubles ($5.9 bln) 20-year loan for Moscow-Kazan high-speed railway project, informed Alexander Misharin First Vice-President of Russian Railways.
“RUB 52 bln rubles (aimed for the section) through Nizhny Novgorod will be allocated to the equity capital (of the project company – TASS) and 250 bln rubles will be granted as a 20-year loan while the second section implies USD1 bln (to be allocated) to the equity capital and a 20-year loan worth RUB 150 bln rubles,” he said.
China also plans to set up a few joint ventures in Russia for construction of the high-speed rail, according to Misharin. “Currently a joint venture is being formed either with the Novosibirsk or Murmansk plants on switch production. The share of construction companies is being discussed”.
The New Development Bank BRICS (NDB BRICS) and Asian Infrastructure Investment Bank (AIIB) could also provide financing for Moscow-Kazan high-speed rail project. “The New Development Bank BRICS can invest up to USD 500 mln. AIIB is a big bank, which can invest billions but it’s not going to be the first, it may be the second,” he said, adding that “potentially they are ready.”
The total cost of the Moscow-Kazan high-speed railway line is estimated at RUB 1.068 trillion rubles ($16.9 bln). The Moscow-Kazan section may later be extended to China, via Kazakhstan. According to the Russian Railways, the length of Moscow-Beijing rail will be 7769 km, travel time – 32.8 hours (four times faster compared to current 130.4 hours). The average annual passenger traffic is estimated at 195 mln people. The Moscow-Kazan High Speed Railway’s total length will stand at around 770 kilometers.
The plan is to set up a special project vehicle, or a concession holder, within the project’s implementation, to focus on the agreement on construction of the Moscow – Nizhniy Novgorod – Kazan section.