VIS Constructioon Group has won a tender for the right to sign an agreement on the construction and operation of a new railway between Bovanenkovo and Sabetta in the Yamal-Nenets Autonomous Area, the local government reports on its website. The public-private partnership agreement was signed by Irina Sokolova, deputy governor of the Yamal-Nenets Autonomous Area, and Sergei Parsadanyan, CEO of VIS CG.

"According to the agreement, VIS CG assumed commitments to design, draw  project documentation and complete the construction of the railway within 36 months until the end of 2019, using its own and loaned funds. The total investment exceeds 113 billion rubles," the website says.

After the construction is complete, the private partner will be responsible for the maintenance and commercial operation of the transportation infrastructure. The agreement is valid for 21 years. At the end of 2036, when the term expires, the railway will be turned over to the Yamal-Nenets Autonomous Area on a gratis basis.

"The project will provide for developing the mineral resources of the Yamal-Nenets Autonomous Area, the Polar Urals, West Siberia and the Arctic, as well as improving the transportation infrastructure of the Yamal Peninsula."

The general-purpose railway between Bovanenkovo and Sabetta will be the final stage in connecting the Energy of the Arctic Northern Latitudinal Railway (Obskaya-2 — Salekhard — Nadym — Pangody — Novy Urengoi — Korotchayevo) with the Northern Sea Route. The railway will cover 170 km. Its capacity by the fifth year of operation will reach 7 million tons, which will double by the 10th year of operation. In the future, it may be capable of transporting 35 million tons of cargo a year.

The railway will be built as a single-track line. However, the roadbed will be laid for a potential second track.