Moscow, September 29, 2020 — The project on creating a Kupchino — Shushary Settlement — Slavyanka tram network in St. Petersburg, which is being implemented by Gazprombank and ABZ-1 Group, was recognized as the Best Urban Transport PPP Project based on the results of competitive selection at the ROSINFRA-2019 National Infrastructure Awards within the framework of the 7th Infrastructure Congress Russian PPP Week 2020.
The Kupchino — Shushary Settlement — Slavyanka tram network is a significant transport project for St. Petersburg, implemented on the basis of the principles of public-private partnership. The concession agreement between the Government of St. Petersburg and BaltNedvizhServis LLC (JV of ABZ-1 Group (90%) and Gazprombank (10%) was concluded in October 2019 for a term of 30 years. The total cost of the project is over RUB 25 bn. This sum entails the construction of a 21km-long tramway with overhead roads and bridges, a tram depot, as well as the delivery of 22 train vehicle units.
Gazprombank is serving as senior creditor and financial adviser for BaltNedvizhServis LLC, and ABZ-1 Group – as construction partner and junior creditor.
The new tram network will run through St. Petersburg’s rapidly-developing Frunzensky and Pushkinsky Districts. The modern, low-floor trams, equipped with air conditioning, Wi-Fi networks and charging stations, will operate in a loop.
As of today, the concession project is Russia’s largest project on creating new urban infrastructure for light-rail public transit in terms of investment volume.
The development of project documents is currently in progress. Plans call for entering the operating stage by year-end 2023.
“Combining the competencies of ABZ-1 Group in the implementation of infrastructure projects with Gazprombank’s experience in financing and structuring large-scale and socially-significant investment projects implemented on the basis of PPP principles is driving the efficient implementation of this project and making it possible to vie for high accolades in prestigious competitions such as ROSINFRA,” said Alexey Chichkanov, First Vice President of Gazprombank.
“BaltNedvizhServis thanks all initiators of the project involving the construction and operation of a tram network along the Kupchino – Shushary – Slavyanka route and is taking part in its implementation. It would have been impossible to create such a large-scale and socially-significant modern tram line without the active support of the Government of St. Petersburg in the conditions of the existing urban area. The project team was formed to include high-quality specialists: lawyers, financial experts, designers, engineers, energy workers and consultants. The concessionaire sees providing as much convenience as possible to the city residents who will use the future tram line as the main goal. Unique competencies and technical solutions were developed during implementation of the project, and our team is willing to offer them to new projects and regions that are keeping a close eye on the St. Petersburg experience,” said Dmitry Pankratov, CEO of BaltNedvizhServis LLC.