7.15  ORLOVSKI TUNNEL CONCESSION, RUSSIA

The Orlovski tunnel will connect the centre of the city of Saint Petersburg with its northeast section. It crosses the Něva River at the historic location of Smolny. It is anticipated that approximately 60,000 vehicles will pass through it daily. The estimated investment costs are approximately 1.5 billion US Dollars. The bidding process is currently underway, with 4 international consortium having pre-qualified. The bidders must propose designs for three lanes in each direction, but the decision to use one or two tunnels, and using tunnel boring technology or submerged sections is left to the bidders. Bidders must provide a mixture of manual and electronic tolling.

The revenue for the project company will be based on an availability payment from the City, with performance penalties.

BUSINESS

CONSTRUCTION OBLIGATIONS

PRIVATE FUNDING

SERVICE DELIVERY

SOURCE OF REVENUE

New

Build

Finance

Bulk

Fee

Existing

Refurbish

User

Tariffs

BUSINESS - NewThe project involves a new tunnel under the Neva River, in St. Petersburg.

CONSTRUCTION OBLIGATION - BuildThe project company is responsible for the construction of a greenfield tunnel.

PRIVATE FUNDING - FinanceThe project is financed through a combination of Government subsidy, equity from sponsors and commercial financing.

SERVICE DELIVERY - UserThe project company provides access to the tunnel to individual users.

SOURCE OF REVENUES - FeeThe project company revenues are derived from performance based fees paid by the Government.