RF Government orders to allocate RUB 150 bln from NWF for BAM and Transsib
The Government of the Russian Federation has ordered to allocate RUB 150 bln from the National Welfare Fund for modernization of Baikal-Amur Mainline (BAM) and Trans-Siberian Railway (Transsib). According to the order published at the Government website, the resources are invested into the preferred shares of Russian Railways OJSC.
The preferred return of investment is 2%-3%, starting from the 6th year of investing. Roszheldor is authorized with the federal control of proper use of funds received.
The explanatory note to the document underlines that the payback period of the project on modernization of BAM and Transsib railway infrastructure is up to 20 years with the sovereign rating of Russian Railways securing against minimal risks of such investments and repayment to be achieved through budget revenues with guaranteed dividend yield.
The Ministry of Finance is instructed to sign agreements with the federal executive authorities controlling implementation of investment projects and proper use of NWF resources till February 2014.