Russia Suspends Concession for the Construction of Kyzyl-Kuragino Line

The project is “frozen” for up to 5 yearsThe project is "frozen" for up to 5 years |  Infrastructurephoto: JSC “TEPK” / / /

The Russian government has decided to suspend the concession for the construction of the Kyzyl-Kuragino railway. This was reported at the disposal of Prime Minister Mikhail Mishustin on March 29. The document was publishedon the Official Internet Portal of Legal Information on April 1. 

The Federal Agency for Railway Transport has been instructed to sign an agreement with TEPK Kyzyl – Kuragino on the suspension of the concession for the construction of the Elegest – Kyzyl (Tuva) – Kuragino (Krasnoyarsk Territory) railway for a period of up to five years.

“Roszheldor, exercising the powers of the concessor <…>, within 60 calendar days from the date of entry into force of this order, conclude with the joint-stock company” TEIC “Kyzyl-Kuragino”, which is the concessionaire under the concession agreement, an additional agreement to the concession agreement, providing the following conditions : suspension of performance by the parties of all undertaken under the concession agreement for a period not exceeding five years from the date of the additional agreement, ”the document says.

The terms of the agreement included a waiver of mutual claims, concession fees and penalties. The implementation of the concession agreement can be resumed at the initiative of the concessionaire, who will have to send a notification to Roszheldor. In the absence of such notification, the concession agreement will be deemed terminated.

The Elegest – Kyzyl – Kuragino railway line is planned to be built on the basis of a concession agreement concluded between the “TEPK” Kyzyl – Kuragino “” and the Russian Federation represented by Roszheldor.

 The length of the line should be 410 km, of which 290 km will run along the Krasnoyarsk Territory and 120 km along Tuva (this may be the first line in the region). The road should allow 19 pairs of trains per day. Construction should be carried out in mountainous terrain, which will require the laying of 8 tunnels with a total length of 11 km, the construction of 127 bridges with a length of 16 km. The trains will run on diesel traction.

 The planned volume of cargo transportation is 15 million tons per year.
The infrastructure is necessary for the development of the Elegest coal deposit and the connection of the region with the Trans-Siberian Railway. 

 The active phase of construction of the Kyzyl – Kuragino line has not yet begun. In February 2020, the competition ended to determine the main design organization, which was supposed to carry out exploration and engineering design work.

The winner was theInstitute “Engineering Group” Stroyproekt “. The customer of the work was OJSC” Russian Railways. “The cost of the contract amounted to 5.5 billion rubles.

In April 2019, OJSC” Russian Railways ” signed anagreement with” TEPK “Kyzyl – Kuragino” At the time, it was reported that investments in the project should amount to 126.6 billion rubles, the construction period – 4.5 years.(

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