Top Stories

OHL awarded in Russia its largest construction project ever for €1,95bn

Posted By: The Corner 12th December 2011

csThe Spanish construction company has announced the signing in Russia of the Polar Ural project, the biggest contract in the company’s history. The contract between the Russian company Yamal Railway and OHL ŽS, OHL’s Czech subsidiary, was confirmed on December 9 in Prague during Russian president Dmitrij Medvedev’s visit to the Czech Republic.

The OHL group through its Czech subsidiary OHL ŽS will carry out the construction of a 390-km long railway with a budget of approximately €1.95 billion including VAT. This is the largest amount ever agreed on for a contract in OHL’s history. The company that promotes this project is Yamal Railway which is participated by Russian Railways, Gazprom, and Polar Urals Corporation-Industrial Urals.

OHL ŽS is the main contractor for the project with a 100% participation. Its execution will start after the closing of its financing process on the part of both the Russians and Czechs. The signing of the contract is greatly connected to the signing of the mandate by Czech Export Bank for the financing of the project along with Russian banks.

The railway that will be constructed will only have one rail, not electrified, from the Obskaya station to Nadym and passing through the town of Salekhard. It also includes the building of a 2.5-km long railway viaduct over the river Ob. The length of the contract is of four years and the project has been divided into three execution phases: Salekhard–Nadym, Obskaya–Salekhard, and the bridge over the river Ob.

OHL ŽS will count on the participation of various Czech companies, amongst them: ŽPSV (a subsidiary of the OHL group), DT Projestov, Trinecké Železárny and Vítkovice. After the signing of the contract, Michal Štefl, CEO and general director of OHL ŽS, said that this contract expands the chances of collaboration on new projects for Czech companies in the Russian Federation.

Spain’s OHL group is 21 on the list of the 225 major international construction contractors according to Engineering News-Record.

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

Be the first to comment on "OHL awarded in Russia its largest construction project ever for €1,95bn"

Leave a comment