CDB pledges loan worth 400 billion rubles for Moscow-Kazan High Speed Railway Construction Project (Linked to Record ID#66990)

Project narrative

On April 29, 2016, China Development Bank reportedly agreed in principle to issue a loan worth 400 billion rubles ($6.2 billion) for the Moscow-Kazan High Speed Railway Construction Project. The initially discussed terms of the loan included a 20 year maturity with a 4 percent interest rate. According to a Vnesheconombank (VEB) source, the proceeds of the loan would be used to facilitate the acquisition of Chinese equipment and machinery. The Chinese Government also reportedly pledged to make an equity investment worth 53 billion rubles (see Record ID#66990). The purpose of this $21.4 billion project is to construct a high-speed railway that will connect Moscow to Kazan, the capital of the Republic of Tatarstan, passing through Vladimir, Nizhny Novgorod and Cheboksary. It plans to reach speeds of up to 400 km per hour, and cut travel time between Moscow and Kazan from 12 hours to 3.5 hours. The Moscow-Kazan section may later be extended to China, via Kazakhstan. The average annual passenger traffic is estimated at 195 million people. The Moscow-Kazan High Speed Railway’s total length will stand at around 770 kilometers. In March/April 2019, the Russian government postponed the implementation of the Moscow-Kazan High Speed Railway Construction Project. Russia’s Deputy Prime Minister explained that the project had been put on hold because of cost considerations. Although construction activities never began, the design of the project is now complete.