Russian Federation : Sberbank, Avtodor Group and FSUE RosDorNII sign contract to provide mandatory banking support and construction supervision services
Sberbank, Avtodor Group and FSUE RosDorNII signed a contract to provide mandatory banking support and construction supervision services for the investment project: Construction of the Central Ring Road of the Moscow Region (startup complex ? 1). The contract was signed following the open tender for providing comprehensive services; Sberbank and FSUE RosDorNII jointly submitted the successful bid.
Banking support will be provided by Sberbank for the duration of construction and through commissioning and handover of the startup complex ? 1. Banking support will ensure transparency and effective control over the use of state investments and all levels of interaction with entities taking part in construction.
The main purpose of mandatory banking support is to control investors and other construction participants use of funds, which are allocated for preconstruction preparations and construction.
Banking support is an instrument which monitors the entity s operational activities and the use of funds, said Bella Zlatkis, Deputy Chairman of the Board of Sberbank of Russia. Of course, funds received for the construction of a particular property should be used for that property. For large projects, it is necessary to efficiently control spending so the client has access to operational information about financial flows. The bank can approve payments for all accounts and block suspicious transactions in order to prevent the misuse of funds.
Construction of the Central Circular Road is the largest infrastructure development project in the Moscow Region: 529km in length, with a total cost of around RUB 300bln up to 2018, including 150bln from the National Welfare Fund. The CRR startup complex ? 1, a general-purpose federal highway, will connect the Podolsk, Naro-Fominsk and Odintsovsky districts and the Domodedovo Municipality. The length of the startup complex ? 1 is 49.5km. Construction period: 2014 - 2018.