Russian Government will allocate 19.9 billion rubles for "Eastern Exit" road in Bashkiria - media

UFA, 26 September 2018. /Bashinform News Agency, Rozaliya Valeeva/ translated by Tatiana Aksyutina/.The Government RF has decided to allocate federal budget funds within the framework of state support for the project to create a new exit from Ufa to the federal highway M-5 Ural (Eastern Exit), Interfax reports citing its own source familiar with the situation. According to it, the draft government order to sign an agreement with the New Development Bank BRICS (NDB) on financing the construction of the Eastern Exit is drawn up and submitted for coordination.

The estimated cost of the "Eastern Exit" project is 34.5 billion rubles, including 19.9 billion rubles of the federal budget, 10 billion rubles of private investment. It is planned that Bashkiria will receive the first tranche of federal funding in 2018.

The agreement with the NDB provides for a loan of $ 68.812 million to Russia for a period of 10 years (including a four-year grace period), with a floating interest rate based on a six-month LIBOR or other reference rate applied by the NDB. The loan will be repaid at the expense of the federal budget, with 12 equal installments every six months.

The "Eastern Exit" is the largest investment and infrastructure project in the republic, implemented based on concession agreements law. The concession term is 25 years.

Earlier it was reported that on June 1, 2017, VTB and the authorities of Bashkiria signed a concession agreement on the financing, construction, and operation of a toll road - a new exit from Ufa to the M-5 highway. As part of the agreement, it is planned to complete the construction started in 1992, including a 1.2 km long road tunnel, a 2,5 km bridge crossing, a 14 km motor road to the federal highway M-5 Ural, the charging points, a traffic management system, and a specialized road maintenance company.

Bashkiria will pay the project concessionaire from 1.2 billion to 3.3 billion rubles a year. Payments will begin in 2022, after the facility will be put into operation, and will be completed in 2031.