On December 12, 2016, a concession agreement was signed in Khabarovsk between the Government of the Khabarovsk Krai and Regional Concession Company (part of VIS Construction Group).

This project is of strategic importance for Russia and involves construction, financing and operation of the auto road “Khabarovsk Bypass, 13-42 km.” Further development of the project will ensure a new transport route to the People's Republic of China and will provide access to the Bolshoi Ussuriisky island and from there to the Chinese road network.

The Capital Legal Services team of associates provided support to the Government of Khabarovsk Krai at all stages of project development and execution, including developing the concept and tender documentation, preparing the draft concession agreement and negotiations with the potential concessionaire.

Under the terms of the concession agreement, the overall cost of the project is over 40 billion rubles, of which 25% is the private investor’s funds. It is expected that 29 billion rubles will be financed through a subsidy, including from the Russian Federal Road Agency using the funds collected through the Platon system.

“The history of using public-private partnership in our country started with the project on reconstruction of the Pulkovo Airport in St. Petersburg, where Capital Legal Services consulted the city. It is very gratifying to note that since then this mechanism has become popular throughout the country. This project is one of the strategic PPP projects being implemented with our support. We hope it will make a considerable contribution to the development of the Far East transport infrastructure,” comments Pavel Karpunin, Partner at Capital Legal Services.