WHSD Central Section Road PPP

Location:

Russia

Project number:

43006

Business sector:

Transport

Notice type:

Public

Environmental category:

A

Approval date:

13 Dec 2011

Status:

Complete

PSD disclosed:

14 Oct 2011

Translated version of this PSD: Russian

Project Description

The Project covers the construction and financing of the the central section of the Western High Speed Diameter Road (WHSD) as well as the future operation and maintenance of the entire road including the Northern and Southern sections built by OAO WHSD/the City of St. Petersburg, under a 30 year concession which was awarded to the Northern Capital Highway Consortium after an open and competitive tender.

The completion of the WHSD is expected to relieve the transport congestion problems in St Petersburg through:

  • linking the City’s commercial port to the Ring Road giving haulage trucks direct access to the seaport of St. Petersburg, minimising the need to drive through residential areas and allowing development of the main cargo transport hub of northwest Russia which is currently hindered by chronic traffic congestion in a densely populated surrounding area ;
  • providing transport links between southern, western and northern parts of the city diverting transit traffic, particularly trucks, from the overloaded streets and bridges of the historic centre of this World Heritage city where traffic intensity has already reached critical levels;
  • reducing the traffic and other manmade impacts on streets, bridges, culture and architectural monuments of the city centre.

The Project is expected to reduce noise and atmospheric pollution and thus improve the quality of life for the city’s 4.6 million people. Carbon dioxide emissions alone are expected to be cut by around 50,000 tonnes per year.

Transition Impact

The proposed Project would be the first large road PPP concession to be awarded to a private sector concessionaire under a regional PPP framework in Russia. It constitutes the crucial next phase of the PPP infrastructure programme launched by St. Petersburg after the successful 2010 concession award for the expansion and modernisation of Pulkovo Airport. Its significance goes beyond the project’s specific scope and lies in its ability to demonstrate the effectiveness of PPP structuring as a means of attracting private sector funding for the significant transport network upgrading and expansion programme in St. Petersburg (Pulkovo Airport, WHSD), which will increase the capacity and effectiveness of not only of the City’s transport system but also that of the region.

The Client

The Northern Capital Highway Consortium led by VTB Capital and Gazprombank.

EBRD Finance

Up to EUR 200 million (in RUB equivalent).

Project Cost

EUR 2.5 billion.

Environmental Impact

The project has been categorised A, requiring a full Environmental and Social Impact Assessment (ESIA) process inclusive of public disclosure and consultation. Draft ESIA documentation has been prepared by external consultants. The environmental and social investigations have focused on the impacts of the construction of the Central Section, but also the environmental and social impacts of the construction of the Southern and Northern sections of the motorway have been reviewed.

The motorway route was initially selected in 1966 and completed in 1999. The final route was formally specified in the Master Plan for St Petersburg in 2005. The route has been almost entirely kept clear from permanent buildings up to date, however, the City has allowed for temporary garages to be built on the route based on short term land lease contracts. Altogether some 1,000 garages, about 650 of them on Vasilievsky Island, will need to be removed and compensated for by the City before handing over the land to the Partner for the implementation of the Project. The Project will also require the resettlement of about 140 apartments in four apartment blocks on Kanonersky Island. To mitigate the adverse social impacts arising from the resettlement of the residents, a Resettlement and Compensation Framework has been prepared in accordance with EBRD Performance Requirement 5 and a detailed Resettlement Action Plan will be developed once the detailed project layout for this section is completed.

Impacts on residential areas on Vasilievsky Island have been identified as one of the key issues of the project. The ESIA includes investigations of noise and air quality impacts as well as impacts on environment and recreational space. The road is planned to be built in an open trench for most of the Vasilievsky Island section preventing visual impacts and much of the noise and air pollution. These impacts could be further mitigated by noise abatement measures. An Environmental and Social Action Plan has been developed to mitigate the potential adverse impacts of the project and structure the project to meet EBRD Environmental and Social Policy and its Performance Requirements.

A scoping process, consisting of a review of the formal public hearings undertaken as part of the Russian permitting process and a number of meetings with potentially affected people and civil society organisations, has been undertaken so as to identify issues and concerns of the project’s stakeholders. The public OVOS (EIA) prepared by independent experts in 2008 has also been taken into consideration in the preparation of the ESIA.

The ESIA documentation is disclosed to the public for public review and comment. The full ESIA documentation consists of the following documents:

  • ESIA report
  • Non-technical Summary of the ESIA
  • Stakeholder Engagement Plan
  • Resettlement and Compensation Framework
  • Environmental and Social Action Plan

The Project is classified as a public sector project and the EBRD Public Information Policy would require the period of disclosure of 120 days from the date of publication which was 14 October 2011 prior to EBRD Board consideration. However, for commercial reasons derogation from the EBRD Public Information Policy is sought from EBRD’s Board to allow for the Project to be presented to the Board for consideration on 13 December 2011 following a 60 day disclosure period.

Further public consultation activities, including open houses and focused meetings with key stakeholder groups will be organised to discuss the findings of the ESIA and proposed mitigation measures during the disclosure period. Exact dates and venues will be announced well ahead of events.

There is an Environmental and Social Impact Assessment available for this project.

Technical Cooperation

None.

Company Contact

Andrei Antonovski
Director
Infrastructure Capital
VTB Capital plc
14 Cornhill
EC3V 3ND
London
United Kingdom

Tel: +44 20 3334 8586
Mob UK: +44 77 6898 1110
Mob RU: +7 985 194 0643
Fax: +44 20 3334 8980
Email: andrei.antonovski@vtbcapital.com

Alexey Marinichev
E: marinichev@twopr.ru
W: +7 (812) 273 2849

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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