The proposed project involves construction of two sections of the St Petersburg Eastern Bypass and two sections of the Chita-Khabarovsk Road in the Russian Far East , together with project implementation assistance and construction supervision. The proceeds of the Bank’s loan will be used to finance each of these components. The beneficiary of the Bank’s loan and the executing agency of the project will be the Russian Federal Road Administration, Rosavtodor. The project will allow the Bank to continue to support road sector reform in the Russian Federation, particularly with regard to road sector financing.
The project will promote transition in three main areas.
Improving road sector financing by supporting the introduction of heavy vehicle charges to compensate for the damage caused to the federal road network by such vehicles and development of a long term road sector financing strategy for moving towards a self-financing road sector.
Improving efficiency of maintenance of the federal road network by supporting restructuring of the state-owned road maintenance companies
Encouraging greater involvement of the private sector in the road sector by supporting development of a strategy for entering into public private partnerships for development of the federal road network.
The beneficiary and executing agency of the project is the Russian Federal Road Administration, Rosavtodor.
Senior loan to the Russian Federation in the amount of US$ 290 million. The project will be co-financed by Rosavtodor.
The total project cost is estimated to be approximately US$ 300 million (including construction supervision, excluding local taxes and duties).
Both project components have been screened A/0 requiring preparation and disclosure of an Environmental Impact Assessment (“EIA”) for each component. The Russian Regional Environmental Centre (“RREC”) was appointed to provide independent assistance to the Bank and Rosavtodor with finalisation of the EIAs and Executive Summaries, reviewing compliance with the Bank’s environmental policy and Russian environmental legislation and investigating any environmental issues arising. This co-operation has been very successful.
The EIAs were disclosed for a 120-day period, in accordance with the Bank’s Environmental Procedures and the Public Information Policy. Corresponding public announcements were made in the following Russian newspapers: Tribuna, Saint-Petersburg Vedomosti, Amurskaya Pravda, Zabaikal’sky Rabochii. Public consultation meetings on the St Petersburg Eastern Bypass and Chita-Khabarovsk road will take place in April 2003. A key issue to be addressed with respect to the St Petersburg Bypass is the resettlement of residents on the proposed alignment of this road. RREC has confirmed that Rosavtodor is complying with Russian legislation and is reviewing whether or not additional measures are needed to comply with the Bank’s environmental requirements. RREC has confirmed that the Chita-Khabarovsk road does not encroach on a protected area, as had been feared. It is reviewing the need for special tunnels under the road for animals. Procedures of collating and summarising public comments will be exercised throughout the whole public consultation period.
The environmental impacts associated with project implementation are those which are typical for road construction of this kind and include impact on air quality, soil, water, biological resources, noise, and health and safety. None of these impacts appear to be significant within the project components proposed to be financed by the Bank and will be adequately addressed through mitigation measures. Construction of the St Petersburg Bypass will divert a considerable part of traffic beyond the borders of the built up areas and thus improve the environmental situation in the city of St Petersburg. Rosavtodor will be required to prepare Environmental Management Plans, acceptable to the Bank, outlining specific mitigation and monitoring measures together with their cost estimates and implementation timeframe during the construction and operation phases for each component. RREC will assist Rosavtodor with the preparation of these plans.
The Bank intends to seek donor funds for the following technical co-operation assignments in order to provide assistance to Rosavtodor with:
development of a long term road sector financing strategy;
development of a restructuring plan for the state-owned road maintenance companies;
development of a public private partnership strategy for development of the federal road network.
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