October
2013
Potential participants in “12-plus-tons” project meet at VEGAS LEX
On October 4, a routine meeting on the upcoming “12-plus-tons” project* tender was held at the office of VEGAS LEX, one of the consultants for the major road concession project.
The meeting was attended by companies that plan to take part in the bidding.
At the beginning of the meeting, representatives of the so called Advisers’ Group informed their audience about the questions that the potential participants had about the main requirements listed in the bidding documents, such as the eligibility requirements for participants, requirements for the bidder’s legal status and the bid composition. The participants also discussed the status of the lands to be granted to the concession operator as part of the project, the timeframe for the new facility’s going on stream, and opportunities for the concession owners to get some extra income in addition to the concession grantor payment.
VEGAS LEX Partner Albert Eganyan , who heads the Advisers’ Group, and Denis Shtirbu, project manager of the public-private projects practice at VEGAS LEX, spoke on behalf of the group. The concession grantor was represented by Valery Grebenyuk, head of the PPP road projects development department at Dorogi Rossii (Russian Roads), a state company controlled by the Federal Road Agency.
The discussion was followed by individual conferences with specific bidders, where companies had the opportunity to ask questions to the advisers concerning their bids and the progress in their consideration.
***
One of the most high-profile PPP projects of the year, the so-called “12-plus-tons” project, kicked off in September 2013. The project involves public-private partnership in the form of a concession agreement. It is expected to bring an estimated RUR1tn ($31bn) over the next 13 years it will be underway. The proceeds will be channeled directly toward the development of Russia’s road network, including timely road surface repairs and expanding the existing roads’ throughput capacity. According to estimates, the project requires some RUR180bn ($5.6bn) in private investment.
The Advisors’ Group was established on a competitive basis to sel ect the best financial offer and technological solution. It is a consortium of consultants comprised of the VEGAS LEX law firm (organizational and legal issues), the InfraONE First Infrastructure Company (investment and financial issues), the GLONASS nonprofit partnership (technical consultancy) and Navigator Group (technical supervisor).
These four companies’ task is to provide comprehensive support to and safeguard the interests of the concession grantor: to draft the concession agreement, to analyze the legislation with a view to making the project more effective, to provide consultancy and support at all stages fr om shortlisting to competitive bidding, and to support the concession grantor through the signing of the concession agreement and the finalizing documents.