Russian Railways and JSC Tuva Energy Industrial Corporation have signed a cooperation agreement to implement the project “Construction of the Elegest-Kyzyl-Kuragino Railway Line.”
The document was signed by the President of Russian Railways Oleg Belozerov and the Managing Director of JSC Tuva Energy Industrial Corporation Ruslan Baisarov within the framework of the St. Petersburg International Economic Forum on 1 June 2017.
The aim of the Elegest-Kyzyl-Kuragino Railway Line project is to ensure the shipment of up to 15 million tons per annum of coking coal from the Elegest coal field.
The construction of the 410-km railway line is planned to be completed in 2022, in just 4.5 years.
The project will be implemented with the involvement of private investors under a concession scheme.
It is assumed that the Russian Federation will act as a concedent. The concessionaire is the special design company JSC TEIC Kyzyl-Kuragino, a subsidiary of JSC Tuva Energy Industrial Corporation.
Russian Railways will invest capital in JSC TEIC Kyzyl-Kuragino and within the framework of the project will supervise issues related to the technology of transportation and the operation of new railway line’s infrastructure, as well as carry out transportation.
JSC TEIC will act as one of the investors of the project, and will also be the main consumer of services for transportation of freight from its own Elegest coal deposit.