Sakhalin Oblast, Transport Industry Investment Project

Rebuilding the railway from the Japanese standard of the width of the track 1067 mm to the Russian standard with the width of the track 1520 mm, to reduce the prime cost of the transportations on 30%, to raise the efficiency and safety of the work.

Duration and stages of project implementation: Taking into consideration the accepted volumes of the change of upper construction of the track - 360 km per year during the period 2006 – 2008. The reconstruction is carried out with the capital repair of the track using triple-filament construction of rail-sleeper grate on ferroconcrete sleepers, which permits to provide the motion of the trains on the track 1067 mm after finishing “the slot”

Property and/or liability rights of investor to the results of implementation of the project: 100% of the stock of OJSC «Russian railways» is the property of the State Current implementation stage of the project: In 2004 the institute “GIPROTRANSTEI”, which is the branch office of OJSC «Russian railways», has worked up the basis of investments Essential project documentation: By the order of OJSC «Russian railways» №3882r dated 16.12.04, the Sakhalin railway, the branch of OJSC «Russian railways», is approved by the manager of the investment project By the order of OJSC «Russian railways» № 795, dated 31.05.05 there was approved the list of the objects of Sakhalin railway, that are to be reconstructed, technically reequipped; as well as the arrangements regarding the organization of the fulfillment of the established works

Availability of the final state, departmental and environmental permission: During the period from December 2004 to March 2005 the department of expertise of the projects and estimates has expertized the feasibility study. On 23d of March 2005 there was received a positive conclusion (ãõüð-636/21 dated 23.03.2005)

Estimated cost of the project: 1,3 billion Euro

Type of state support: Capital investments Sources of financing (%): internal funds - 10,4; funds of regional budget - 89,6

Payback period:10,8 years (simple payback period), 11,5 years (discount payback period) Means of attraction of the investments:credit

Initiator of the investment project: OJSC «Russian railways», 2, New Basmannaya str., Moscow, 107174

Contact Info: Head of the company - Yakunin Vladimir Ivanovich Tel.: +7 (495) 262-99-01