State company «Russian highways» General presentation June 2011

State company “Russian Highways” was created by the federal law №145-FZ in order to maintain and develop the highways network of Russia, improve road services and infrastructure. Russian Federation is the founder of the State company. Acting as a state organization State company “Russian Highways” attracts investments using PPP mechanisms. introduction - Attract investments using various PPP mechanisms - Maintain roads of the State company - Collect tolls and implement tolling - Manage the ROW and wayside - Carry out functions of the grantor on concession agreements goals 2

Government of the Russian Federation approved the long-term development program of the State Company “Russian Highways”. According to the program, planned investments of the State company for the years are 35,7 billion euro, 24,1 billion euro (67,5%) of which are federal subsidies, and 11,6 billion euro (32,5%) – private financing. funding used forms of public-private partnership 3 concessions Direct toll Availability payments O&M contracts investment agreements for pre-project stage implementation with following concession possible (D+BTO) investment agreements for pre-project stage implementation with following concession possible (D+BTO) long-term contracts for construction and operation (BOT) long-term contracts for construction and operation (BOT)

prospective highways network of the State company by the year 2030 federal roads regional roads state border transit points legend: toll roads prospective roads Moscow By the year 2030 the total length of the road network of the state company will reach approximately km. 4

existing highways network of the State company RoadLength, km Asset management transfer year Federal highway М-4 «Don» Federal highways M-1 «Belarus» Federal highway М-3 «Ukraine» legend: roads transferred in 2010 roads to be transferred in 2011 Moscow 5

№ProjectConstruction timeLength 1Reconstruction of the M-4 “Don” federal highway km 2Reconstruction of the M-1 “Belarus” federal highway ,9 km 3Construction of the new Moscow – Saint-Petersburg highway km 4 Construction of the new transport corridor “Center -Urals” (Moscow – Nizhniy Novgorod – Kazan – Yekaterinburg – Tyumen) km 4.1 Construction of Noginsk bypass (head part of the corridor “Center –Urals”) km 5Reconstruction of the M-3 “Ukraine” federal highway ,8 km 6 Construction of the international transport corridor “Europe – Western China” (Saint-Petersburg – Vologda – Kazan – Orenburg – Kazakhstan border) 2011 – km priority projects: 6 7Construction of the Central ring road km

first concessions in Russia New Moscow – Saint- Petersburg highway construction New exit from the Moscow Ring Road and Odintsovo bypass The construction of the head part of the section 15 km – 58 km will start in 2010, and is realized on a concession basis by the «North-West concession company» LLC (group «Vinci», France). Construction cost – 1,48 billion euro, State financing – 38,6%, 0,57 billion euro, Private financing – 61,4%, 0,91billion euro, Construction time – , Concession type – direct toll Concession agreement for the new exit from the Moscow Ring Road and Odintsovo bypass at the federal highway M-1 “Belarus” was signed on the 17 th of July 2009 with «Main road» CSC ( MC“Lider”, Alpina, FCC, Brisa). Construction cost – 0,533 billion euro, State financing – 51,18%, 0,272 billion euro, Private financing – 48,82%, 0,261 billion euro, Construction time – , Concession type – direct toll Length43,1 Lanes10/8/6 Speed150 km/h Toll systemclosed Length18,5 Lanes8/6 Speed120 km/h Toll systemclosed 7

Moscow Saint-Petersburg Valday national park Novgorod Moscow – Saint-Petersburg highway (km 58 – km 684) Road sectionLength, kmConcession type Concession tender time Construction time Construction cost, thousands € Private funds km 58 – km 14991direct toll ,5 40% km 149 – km availability payment % km 258 – km 334 (Vishniy Volochek bypass) ,6 - km 334 – km ,6 34,2% km 543 – km availability payment ,3 30% km 646 – km 68438availability payment ,6 30% 8

15 58 Festivalnaya St. skyway Ac. Korolev St. Moscow Moscow – Saint-Petersburg highway: Northern belt road Moscow exit State company “Russian Highways” initiates important city projects such as the Northern belt road which links Moscow with the head part of the new Moscow – Saint-Petersburg highway. Northern belt specifications Length – 11 km. Number of lanes – 6 Approximate cost – 2,5 billion euro State investments – 50% Private investments – 50% Design&Construction: Concession type – DBFO/availability payments 9

33 км 84 км231 км 449,9 км Moscow Smolensk Vyazma 380 км Road sectionLength, kmConstruction time Construction cost, thousands € Private funds км 33 – км ,035% км 84 – км ,535% км 230 – км ,535% км 380 – км 449,989, ,035% M-1 “Belarus” federal highway reconstruction The whole M-1 “Belarus” federal highway will be reconstructed and operated via DBFO/availability payments financial scheme. 10

M-1 “Belarus” federal highway reconstruction Regions: Moscow, Smolensk Sections length: 436 km Intensity forecast: – vehicles per day Category: 1B Estimated speed: 120 km/h Number of lanes: 6/4 General information Project information Overall cost: mln. €: State financing: 65% Private financing: 35% Concession type: Availability payment/ DBFO Concession time: 25 years Concession tender time: 2012 Reconstruction time:

M-4 “Don” km 633 – km 715 section construction Regions: Voronezh Section length: 82,5 km. Daily Intensity: per day Category: 1B Estimated speed: 120 km/h Number of lanes: 4 Tolling system: closed General information Project information Overall cost: mln. €: 1000 State financing: 75% Private financing: 25% Concession type: Availability payment/ DBFO Concession terms: years Tender terms: Construction terms:

M-4 “Don” tunnel construction at km 1411 – km 1417 Regions: Krasnodar Section length: 5 km. Intensity forecast: per day Category: 1B Estimated speed: 80 km/h Number of lanes: 4 Tolling system: closed General information Project information Overall cost: mln. €: 300 State financing: 50% Private financing: 50% Concession type: Availability payment/ DBFO Concession terms: 30 years Tender terms: Construction terms:

М-4 «ДОН» Legend toll sections O&M contract 1 toll sections not toll sections O&M contract 2 toll sections not toll sections O&M contract 3 toll section DBFO (LCC) contracts number of section M-4 “Don” highway: reconstruction for tolling NoToll sectionsTermMileage Current Traffic* NoToll sectionsTermMileage Current Traffic NoToll sectionsTermMileage Current Traffic O&M CONTRACT 1O&M CONTRACT 2O&M CONTRACT 3 1км 25 – км , км 225 – км , км 877 – км , км 48 – км км 287 – км , км 948 – км , км 71 – км , км км , км 1091 – км , км 117 – км км км , км 1119 – км , км 211 – км км 414 – км , км 492 – км , км 544 – км , Moscow Voronezh Rostov-na-Donu Krasnodar № O&M contacts: sections breakdown UKRAINE BLACK SEA AZOV SEA NoToll sectionsMileage Total (Euro) Private finances (Euro) DBFO CONTRACTS 1313км 633 – км bln25% 18км 1411 – км mln50% 6 18 * per day 14

60 Noginsk 16 Moscow Ring Road 15 Construction of the new exit from the Moscow Ring Road at the federal highway M-7 “Volga” (bypass of Noginsk) Regions: Moscow area Sections length: 50 km Intensity forecast: vehicles per day Category: 1B Estimated speed: 120 km/h Number of lanes: 6 Overall cost: mln. € State financing: 50% Private financing: 50% Concession type: direct toll Concession time: 30 years Concession tender time: Reconstruction time:

CRR – Moscow Central Ring Road CCR length – 520 km Result of the long-term program – first stage of construction (320,7km) Estimated speed – 140 km/h Number of lanes on the first stage №First stage of constructionkmTerms 1 Part 3 from the intersection with new M- 11 Moscow – Saint-Petersburg highway and M-7 federal highway 105, Part 4 from the intersection with M-7 federal highway and M-4 federal highway 96, Part 1 from the intersection with M-1 federal highway and new M-11 Moscow – Saint-Petersburg federal highway 118,

International transport corridor “Europe – Western China” International transport corridor “Europe – Western China” will connect EU, Russia, Kazakhstan and China. It is estimated to have much influence on the integration of transport networks, trade development and regional cooperation. Prospective characteristics by the year 2022: Length: 2090 km, Category: 1B, Number of lanes: 4-6, Estimated speed: 120 km/h 17

According to the federal law №71-FZ State company received government guarantees of the Russian Federation for loans. The guarantees for the loans in the beginning of 2011 are 75 million euro and are destined to payback a nominal bonds volume or to return the loans of the State company. In 2011 these guarantees will be used to secure the bonds issue planned for the beginning of Secured bonds will allow their holders to submit claims to the Ministry of finance of the Russian Federation in case of unexpected difficulties with the redemption of bonds. Government guarantees 18

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