First Deputy General Director for Finance and Economics of Bamtonnelstroy-Most JSC Nikita Satyukov on the expansion of BAM

To organize financing for the construction of three tunnels and a bridge on the BAM by 2032, two models are being developed – a concession and an EPCF contract. The first deputy general director for finance and economics of Bamtonnelstroy-Most JSC told Kommersant about the difference between the models and construction timeframes. Nikita Satyukov.

— What are the advantages of the concession model, what are the advantages of the EPCF?

— This doesn’t matter to us, we are a construction organization. A concession is a more traditional instrument for the development of transport infrastructure known to all participants, while the EPCF is characterized by the speed of approval, since, in fact, it is a bilateral agreement.

— And JSC Russian Railways orders your services on the basis of a life cycle contract?

— The point is that JSC Russian Railways orders the construction of a facility, we, as a contractor, carry it out and attract a loan for construction. We build and hand over the facility to JSC Russian Railways, and JSC Russian Railways pays for the constructed facilities, taking into account interest on the loan. Speaking from the government’s point of view, the advantage of the EPCF scheme is that there is no need for budget financing during the construction of the facility.

— How will investments be returned under the concession scheme or under the EPCF scheme?

— By increasing the flow of cargo. Transportation volumes will increase significantly due to the implementation of these infrastructure projects. And the participants in the process will have additional income streams, including in order to return the invested funds.

— Will the infrastructure ultimately be on the balance sheet of Russian Railways?

– It depends on the scheme. If we talk about the EPCF contract, then after construction it will be on the balance sheet of Russian Railways. If we are talking about a concession mechanism, then everything depends on who will be the grantor and on the terms of the concession agreement. Negotiations are still ongoing.

— What volume of investments are we talking about?

— We have approximate parameters, but the final cost of construction will be determined based on the design results. Design has not yet begun, it will begin after the implementation scheme is approved and documents are signed.

— In what time frame should construction be completed? Until 2032?

— For those objects for which we submitted a concession initiative, until 2032. But within this period, some of them take ten years to build, others in a shorter period of time. So, the second Severomuisky tunnel will take ten years.

– Not less?

– No. But this takes into account the fact that design and construction are going on simultaneously. And this is quite an ambitious period, since the first operating tunnel took 28 years to build.

“But simple arithmetic says that even if we start right now, it won’t be completed by 2032…

— If the production process is organized correctly, design and construction are parallelized, and if funding arrives in a timely manner, then this is realistic.

Interviewed by Natalya Skorlygina