Projects: Project Financing and PPP
Among the large number of infrastructure projects implemented with participation of Capital Legal Services, the following projects can be highlighted as being the most significant:
Construction of bridge across Lena river near Yakutsk
Capital Legal Services currently provides legal advice to the Federal Highway Agency of the Ministry of Transport of the Russian Federation on issues concerning the project on construction of a bridge across the Lena river near Yakutsk of the Saha-Yakutiya Region, based on a concession agreement.
The construction of a bridge across the Lena river will be one of the largest investment projects in Russia and implies use of the public-private partnership scheme to be implemented under a concession agreement based on the principles of a “life cycle contract.” Currently, concession agreements for isolated projects of such scale do not exist in the Russian practice. The total amount of project investments is expected to be 1.1 bln Euro.
Construction of Western High-Speed Diameter
At present, Capital Legal Services is providing legal support for a unique project – construction of the Western High-Speed Diameter (WHSD) in St. Petersburg. The WHSD is a strategic investment project of the City of St. Petersburg to make the city a world-class transportation hub. The WHSD will be the first high-speed toll motorway in Russia. The WHSD is designed to decrease the city’s transit traffic burden in the St. Petersburg downtown area. The highway will span 46.6 km. The WHSD project provides for construction of 14 traffic junctions, as well as unique bridge structures which will be constructed in Russia for the first time.
Pulkovo Airport Reconstruction
The Pulkovo Airport development and reconstruction project became the first successful public-private partnership project in the area of airport activities in Russia, within which international PPP standards were applied and project financing by international financial organizations was used.
According to 2011 year end statistics, Pulkovo Airport is the third largest airport in Russia, servicing 68 airlines on a regular basis. The passenger flow rate of Pulkovo Airport in 2011 comprised over 9.6 million passengers. On November 15, 2012 the airport broke the 10 million passenger mark for the year.
In 2008-2009 St. Petersburg held a tender for the right to sign an agreement on creation, reconstruction and operation of facilities which are part of Pulkovo Airport assets. Based on the results, the PPP agreement was signed with the tender winner. In 2010 the project financial closing was reached and the airport was transferred to the project company. Bank financing of the project is carried out by a pool of banks under the control of EBRD. The total amount of investments is 1.3 billion Euro.
Capital Legal Services was counsel to the City of St. Petersburg and Pulkovo Airport and provided legal support at all stages of the project. This project became the focus of attention as the first successful project on developing St. Petersburg infrastructure based on use of a public-private partnership. This project was recognized the best in the nominations of “Global PPP Transaction of the Year” and “European PPP Transaction of the Year” by Infrastructure Investor, a prestigious international magazine.
Construction of the Arts Palace on Vasilievsky Island
Capital Legal Services was legal counsel to St. Petersburg on a project to construct a multifunctional entertainment center named the Arts Palace on Vasilievsky Island, advising from the tender process, including the preparation of tender documentation, through the public-private partnership agreement.
Construction of schools and preschool general education establishments in St. Petersburg
This project implemented with legal support of Capital Legal Services became the first experience in applying the public-private partnership mechanism in education.
Capital Legal Services represented one of the participants in an open tender for the right to sign an agreement on creation, reconstruction and operation of facilities providing water treatment and purification based on use of a public-private partnership.
World Bank Public Transport Project
Capital Legal Services advised the World Bank on a project related to assessing the current state of public transport in Russia and developing a strategy for its improvement.
Development of concept of paid parking on roads of St. Petersburg
Capital Legal Services has developed a concept of paid parking on roads of St. Petersburg for the St. Petersburg Government Committee for Transport and Transit Politics. We have also drafted the normative documents necessary for creation of paid parking on roads of St. Petersburg and advising the client on various issues related to the implementation of the project.