PRESS: Avtodor to sell stake in project firm to build 39 bln rbl road

MOSCOW, Aug 16 (PRIME) -- Russian state-owned highway operator Russian Highways, also known as Avtodor, plans to sell a stake in one of its project companies DZOK to private investors in September to raise investment for a 39 billion ruble road, Vedomosti business daily reported on Friday citing sources.

A source close to Avtodor said that the company will initially sell up to 49% in DZOK, and the investor will be able to raise his stake to 75% after financing organizations provide loans. Avtodor may sell its entire stake in the project in several years after it launches the 51 kilometer highway in the south of Russia, the source said.

The government has only allocated 25 billion rubles on the road that will bypass Krasnodar.

Four sources told Vedomosti that construction companies Avtoban, ICA Construction, and Donaerodorstroi may buy the DZOK stake. The companies are forming consortiums for the deal with Russia’s largest banks Sberbank and Gazprombank. ICA plans to bid together with the Russian Direct Investment Fund. Two sources said that ICA and the find offered the best price.

Under the deal, a private investor would be to sign a long-term investment agreement with the government. The share of private investment in such projects amounted to 10–15% previously, while now it may reach 30% similar to concession agreements, a source close to Avtodor told the business daily.

(65.8907 rubles – U.S. $1)

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