This year will start the building of Moscow-Petersburg Highway

Construction of the high-speed freeway between Moscow and St. Petersburg could start as early as this year, a government official said Friday at a meeting in Murmansk with journalists from the Northwest region. The highway will become one of the largest public-private partnership projects in the region.

The 600-kilometer highway will be constructed in several stages, starting with a small section of 60-70 kilometers. Construction costs are estimated at approximately 350 billion rubles ($14.4 billion). “It’s a large investment. That’s why we are using a concession scheme,” Medvedev said.

Currently several large public-private partnership projects are underway in St. Petersburg, including the Western High-Speed Link-Road and the Orlovsky Tunnel. The cost of the Orlovsky Tunnel under the River Neva is estimated at $1 billion, which is to be provided in equal proportions by the Investment Fund of the Russian Federation, the St. Petersburg budget and a private investor.

The project is due for completion in 2011, when the investor will operate Orlovsky Tunnel for 30 years, charging drivers a fee. The tender procedures are still being held.