Russian road projects delayed by funding shortage

In Russia a series of road projects planned to improve connections to Moscow’s Domodedovo Airport have been cut. The new roads connecting to Domodedovo Airport are required for the 2018 FIFA World Cup. But with Russia cutting its federal budget for road development, the projects have halted. Projects affected include the reconstruction of five sections of the A105 federal highway to the airport, construction of four interchanges and nine pedestrian overpasses. The work was expected to cost a total of US$206
February 9, 2016 Read time: 2 mins
In Russia a series of road projects planned to improve connections to Moscow’s Domodedovo Airport have been cut. The new roads connecting to Domodedovo Airport are required for the 2018 FIFA World Cup. But with Russia cutting its federal budget for road development, the projects have halted. Projects affected include the reconstruction of five sections of the A105 federal highway to the airport, construction of four interchanges and nine pedestrian overpasses. The work was expected to cost a total of US$206.23 million. Work has also halted on the 7km road connecting the M4 Don route to Domodedovo Airport. In 2014, Avtodor estimated the cost of the highway at $171.8 million. A portion of the funding for investors. Meanwhile Avtodor has also not announced a funding allocation for the work.

Russia’s massive road building programme is of key importance to its long term economic future. Transport connections in some parts of the country are very dilapidated and even in developed areas, many roads are highly congested or in a poor state of repair. The country’s ambitious road construction programme was intended to address these transport shortcomings. However a combination of economic sanctions coupled with low oil prices hitting export revenues, budgets have had to be downsized.
Finance & Funding

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