Russia and China pledge high speed rail PPP

Russia and China have signed a Memorandum of Understanding (MoU) for the development of a new high-speed rail PPP.

China’s Premier Li Keqiang and Russian Prime Minister Dimitry Medvedev have overseen the agreement, which will have both countries to develop a strategic partnership and co-operation for design, construction, maintenance, supply of equipment, investment and project financing for the 770km project.

The proposed project is expected to cost around $25bn and will pass through seven Russian regions and have 15 stations, including in Moscow, Vladimir, Nizhny Novgorod, Cheboksary and Kazan. It will reduce journey times between Moscow and Kazan by up to eight hours.

According to the Chinese Premier, the project could ultimately form the first phase of a 7,000km high-speed corridor linking Moscow with Kazakhstan and Beijing.

Design for the line could begin next year. Overall the Chinese are expected to invest around $10bn in the project, participating in it as a PPP and contributing to the equity financing for the project, both in equity investments and debt financing.