Deputy Minister of transportation of the Russian Federation Alan Lushnikov about the Kyzyl-Kuragino railroad

«When an investor becomes financially involved in an infrastructure project, it is paramount for him that risks should be properly shared between himself and the State.»

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– What is your perception of the future of the many concession projects announced? Which of them have potential?

– Currently there are two projects that hold promise in the area of freight transportation: Kyzyl-Kuragino and the Northern Latitude Road. I have something of a personal weakness for Kyzyl-Kuragino: back in 2008, when I was head of Russian Railways, it was I who signed the investment agreement with Sergei Pugachev at the Saint-Petersburg Economic Forum – he was the driving force behind this project at the time. Now nearly ten years have gone by, Sergei Pugachev is away from Russia, the construction of the road is stalled. This is why I would be very keen to move ahead with this project. We are conducting negotiations, we are drawing to a conclusion, but in order for us to reach final consensus a number of issues need to be settled, first and foremost the sharing of risks. We are of the view that the risks should be borne by the one managing them. At the same time, when an investor becomes financially involved in an infrastructure project, it is paramount for him that risks should be properly shared between himself and the State. Then he can invest and expect the project to be completed.

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Source: «Kommersant»