Near St. Petersburg, under the threat of failure was the construction of a high speed toll highway M-11 Moscow – St Petersburg motorway, due to open in 2018. The behavior of one of the General contractors has led to a chain of bankruptcies of companies in St Petersburg and at least one suicide attempt.
In the last two sections of the track, the 7th and 8th, from Novgorod to St. Petersburg, the construction work is almost at a standstill due to chronic non-payments to the General contractor, the Italian-Turkish company ICA, which led to the bankruptcy of dozens of subcontractors. General preteenlolitamodels road M-11Москва – St. Petersburg will be about 700 km. It is one of the first major highways in Russia, the fare for which will be paid. For the construction of this route is the first in Russia applied the mechanism of state-private partnership in the form of a concession agreement for attracting private investments and using them to replace budgetary expenditure for the construction of infrastructure facilities. The route needs to open up to the world Cup in 2018.
Structure Arkady Rotenberg associated with the construction of M-11
For several months the General contractor for the construction of highway M-11, Italo-Turkish predpriiatiia(ICA Astaldi-IC Ictas) retains payments for work performed dozens of large and small subcontractors. The General Director of company “Topservice” supplying building materials to the construction site of the track,Vladlen Kumskovdescribes the situation faced by his company:
For our company this situation, because of debt “hanging” for over two months. Large debt, tens of millions. Of the company retires people because we can’t pay salaries. Also, we are unable to make lease payments and, accordingly, now do loans, our credit history is spoiled. All this leads to the bankruptcy of our company, steadily worked from the moment four years ago when we formed, having bought 13 trucks. We have at present three machines are in repair, each is estimated to be worth from 80 000 to 120 000 rubles. We have the money no, car can’t get out to the track. We can’t pay the diesel fuel. Of the 13 machines running three to four.
According to Vladlena Kumskova, there is a destruction of business in Saint Petersburg:
It can be directly called by the destruction of the business in St. Petersburg
– I believe this is a very serious problem. If a large company does not fulfill its contractual obligations and if the average business all the same, as we, at small, it can be directly called by the destruction of the business in St. Petersburg. This is a disaster.
Among caught in such a critical state on the verge of bankruptcy of companies working on sub-contracts for the construction of the highway M-11, there are small, medium and large road builders, suppliers and transporters of construction materials. Many of them turned to the center of the enterprises of carriers, Associatio “Gruzavtotrans”.
The President of the AssociationMr Matawansays that such appeals are already dozens and their number is growing every day. The total amount outstanding as at today to subcontractors, is more than three and a half billion rubles:
– We have asked several dozen companies are now going to do it and others. We will soon prepare a General letter carriers of St. Petersburg and the Leningrad region and the road-construction companies will be notified about the collection of signatures, and will post it on our website and on сайтеAcoola. Accordingly, all contractors who fell into this desperate situation, got the letter to sign. This morning some contractor reported that since August they are not paid for work not only on the highway M-11, but on the Western high-speed diameter, the General contractor on the construction which is the same company ICA.
– What is the reason of non-payment of money to subcontractors? We tried to find out in the ICA, but there is the phone no one answers. I have the feeling that all escaped.
The money was supposed to go to pay contractors that were spent inappropriately
The reason, as we understand from discussions with representatives of the authorities, namely the President of the management Board of Avtodor (the project is led by the construction of M-11) Sergey Callaham and General Director of OOO “Magistral of two capitals” Anton Novikov (the customer of construction of the 7-th and 8-th section of M-11), is supposedly in the Italo-Turkish company, as she can not prepare the documents necessary for delivery of the constructed assets and, accordingly, to pay for their construction. Supposedly to lack of funding there. But, as I said the representatives of construction companies and carriers, the Turkish company has purchased to perform the work a large number of private vehicles, with more than hundreds of machines. I think the money was supposed to go to pay contractors that were spent inappropriately. And because of that there was this collapse.
– Why they bought the equipment? They wanted to carry out work on the highway M-11?
Maybe. We did not conduct an investigation. But in our market there is a very difficult situation. Carriers, road construction company who work on these contracts, quarries that supply gravel and sand, more than three months do not get the money. As a result, they are unable to meet their obligations to banks, to drivers, to supply fuel and wheels. One contractor completely paralyzed the whole segment. And it has caused some social tension. Now in front of the ICA on Krestovsky island is a car that says: “the ICA will refund the money!”. People come to us and ask to involve the authorities to the problem, because they already take the car, block the accounts. They say: “Foreign companies in this market is given priority, and the company behaves, to put it mildly, not absolutely cultural. Not as much as expected to behave in a European company.”
–General Director of the company “Magistral of two capitals” Anton Novikov, and this company is responsible for the construction of the 7th and 8th sections of the route M-11, the request “RBC Petersburg”said the following: “Work at the facility are in full accordance with the schedule developed by the General contractor. However, the acceptance and payment of work performed, in accordance with the terms of the signed Concession agreement is carried out on major elements of the object. (…) In this regard, there is a gap between the partial execution of works according to the elements and the emergence of the right General contractor to submit and receive payment. To date, the contractor has already started the delivery of the completed items and will soon start to receive money for work performed. Completion of construction works and entering 7th-8th part of the track to be commissioned in mid-2018, in line with the schedule.” You, these words soothe?
We are several days in a row on our machine of social control went on it, there is no work in progress
– Listen, but this is the problem of a direct relationship with Anton Novikov with a Turkish company. And violated, we believe, certain agreements and the rights of the people who worked on the contract on subcontracts. They fulfilled their obligations! And documented their completed work was closed. Contracts they are a few months ago was to get money, and that there is between the contractor and the customer, there is some kind of misunderstanding or non-compliance of the Turkish company, should not affect these entrepreneurs. Now all these companies will go bankrupt and who will perform work on the highway M-11? This is a breakdown of all contracts. The construction of the highway will rise. We are several days in a row on our machine of social control went on it, there is no work in progress. Almost all worth it. Here it is necessary to have national leadership to intervene in the situation. Because those appeals that we sent and announced orally to the authorities, and Novikov, and Kilbaha, no results failed. And the fact that there somewhere is not satisfied the conditions of the concession agreement, we do. Where do the subcontractors?
– Do you think that there is a threat of failure of terms of commissioning of the M-11?
The other day he tried to commit suicide by throwing himself under the car
– There is a jeopardy. Already, many transport companies and contractors began to abandon further work with this Turkish company which is not fulfilling its obligations. Everything works on the chain: for suspension of payments by these companies will cease to work for other companies, not related to the highway M-11. This can result in mass protests. People say to me that it is ready to go and cut the Moscow route. Yesterday I spoke with one of the carriers of Tosno. He told me a story of an entrepreneur who under the contract with ICA bought in leasing a car and now because of the failure of contracts in front of the leasing company, suppliers of fuel, due to non-payment of salaries to the drivers lost their cars, appeared in court, lost his apartment due to overdue mortgage payment. The other day he tried to commit suicide by throwing himself under the car. His car traveled, but this fact is noted in the police Department. This is what brings failure to fulfill any obligations! And the government in this respect does not regulate the situation, believing that commercial disputes will be solved by themselves. Even Vladimir Putin a few days ago focused on the fact that the General contractors are the big defaults that there is a significant delay, amounts to six to twelve months. And when people turn to the courts, where they are either not taken seriously or the police officers do not fulfill their obligations in the won courts. You want normal, according to the law to work and not work. And what people do? The nineties, or what to include?
Scandalously famous highway M-11 has already attracted the attention of the public, we can recall the protests of the defenders of Khimki forest, and requirements to reduce tariffs, the introduction of “highways” for travel on this route (petition it was signed by nearly 100 thousand people). And the already constructed section of the new highway in the Moscow region this winter is almost clean of snow.
Concessionairethrough section of highway M-11является “North-West concession company” (szkk). Half szkk owned by the French company Vinci, and the other 50% – Russian shareholders, including the structure of the St. Petersburg businessman, which some media called a friend of Russian President Vladimir Putin, Arkady Rotenberg (Rotenberg bought this stake in December 2010, the shareholders of the company “N-TRANS”).
And in Petersburg the construction of the highway M-11 has already begun to compare with the construction of the stadium “Zenit arena”.
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