RUSSIA: A 20-year PPP concession agreement for the modernisation of the Lipetsk tram network has been signed by regional governor Igor Artamonov, Mayor Evgenia Uvarkina and Movista Regions CEO Alexander Sovetnikov.
Movista Regions will modernise 40·8 km of the existing 1 524 mm gauge infrastructure, build 5·2 km of new track, rebuild the depot and purchase 46 new trams.
Work is due to start at the end of 2022 with the depot, and be completed by autumn 2025.
The concessionaire will invest 14·5bn roubles and be paid 24·5bn roubles over the period of the contract. This will include 17·4bn roubles to reimburse the investor’s costs and for debt repayment and servicing; the annual interest rate on the loan may not exceed 5·65%. Another 2·9bn roubles will be paid to cover the costs of operations and execution of the agreement and there will be a 4·2bn rouble capital grant.