Investors in construction of fourth subway line in Kyiv to be selected by late 2013
Investors in the construction of the fourth line of Kyiv Metropoliten to the Vyhurivschyna-Troyeschyna residential area will be selected in the autumn of 2013, the head of the main economic and investment department at Kyiv City State Administration, Ihor Dovban, has told reporters.
"We plan to hold a tender in a year. We intend to sign a contract in late 2013. There will be the legal grounds to talk about the beginning of construction," he said.
The project to construct the fourth subway line in Kyiv has an estimated cost of UAH 12 billion ($1.5 billion), and the term of construction is six years. It is planned to build 12 new stations, including two interchange ones.
The Federal Centre for Project Finance (a subsidiary of Vnesheconombank, Russia) won a tender for investment consulting services. VEB also plans to participate in the project financing. The funding model has not been determined.
Apart from VEB, Ukrainian and foreign investors, for example those from China and Korea, are interested in the project.
As reported, companies from Russia, France, the United States and Germany expressed interest in the construction of the fourth line of the Kyiv subway. Deputy Head of Kyiv City State Administration Ruslan Kramarenko this spring said that Sberbank of Russia and Vnesheconombank have submitted applications for financial consulting.
Transinzhstroy, Transmashholding and Vagonmash expressed willingness to participate in the project.
Dovban saidvarious options of payback are being looked at, but the implementation of the project should not lead to a sharp increase in the cost of travel.
"Related infrastructure projects could be created, which would help pay for the project," he said.
The fourth subway line will run from the right bank of the Dnipro River to the left bank. It is planned in the future to expand the line to Zhuliany airport, said Dovban.
In addition, the Kyiv authorities are considering another project to connect the right bank with the left one – via the construction of a bridge or a tunnel.
"A feasibility study is now being developed to determine what is more effective - a bridge or a tunnel," the official said.
