Reconstruction of Moscow Ring Rail Audit of the feasibility study - Preparation of Business Plan
Moscow City Government
Fund “Moscow Project Implementation Unit” (jointly financed by the World Bank and Moscow City Government)
International audit of a russian feasibility study
Approximate value of services
Others members of the consortium leaded by Setec
Landwell (France), lawyer’s company,
RBS (Russia), audit company
Period of assignment
Description of services provided by Setec
· 1st step :Project analysis
- Demand and Revenue Analyses,
- Operating Cost Analyses
- Capital Cost Analyses
- Value Capture
-Cost-Benefit and Sensitivity Analysis
· 2nd step: Development of institutional framework
For this task, Setec coordinates the work done by Landwell and RBS. -This task consists of recommending an institutional framework wherein the City and the MR can work together to plan and manage the SR project in a way that serves both the City’s and MR’s interest.
· 3rd step: Development of Business Plan
Based on the above analyses of projected demand, revenue, costs and potential investment and operating contributions, develop a Business Plan showing year-by-year funds generation or requirements of the SR along with internal (Moscow and MR or MPS) and external sources of operating and investment support. This plan should analyze the possibilities for attracting external investments from the private sector and from international financial institutions.
Description of the project
The public transport system of Moscow has historically accommodated at least 85 percent of all motorized trips in the city. However, with the transition to a market economy, private vehicle ownership has increased from approximately 800,000 vehicles in 1990 to over 2.2 million in 2001. The modal share taken by cars in passenger turnover has increased considerably.
Until now, the Moscow City strategy has been one of increasing the supply of road infrastructure in response to increased motorization. However, with the growing awareness that this measure alone will not address the mobility needs of the people, the Moscow City Government proposes to take additional measures including extension of the Metro, and improving the operations of and increasing conveyance by rail within Moscow, including that by the SR line, to permit passenger use while maintaining freight traffic.
The main goal of this project is preparation of business plan for reconstruction of the Small Ring of the Moscow railway in accordance with international project evaluation standards.
The assignment includes three major stages:
- Reviewing the Genplan (Moscow urbanism institute) studies of the economic and financial feasibility of the proposed SR project and assess their accuracy and reliability.
- Recommending a framework for the institutional and legal arrangements which would be necessary for the implementation and effective operation of the project.
- Generating a final version of the business plan suitable for use by financial institutions and investors in deciding whether to commit resources to making a definitive project evaluation.