Russian President Calls for Cutting Road Construction Costs

VLADIVOSTOK. April 6. VOSTOK-MEDIA – Russian President Dmitry Medvedev considers it necessary to cut roads construction and maintenance costs.

“Last year over 126 million rubles were spent on construction of federal highways, which, on the one hand, is quite a tidy sum but, on the other hand, is by far insufficient taking into account what a big state we live in and what kind of communication lines we have – they are below criticism,” said Dmitry Medvedev at a meeting on construction of transport infrastructure facilities.

The President also reminded that 67bln rubles were spent on maintenance of federal highways last year. “The more we will build – and we will continue to build, the higher the subsequent maintenance expenses are,” stated Dmitry Medvedev. “Therefore, the priority should be given to reducing the cost of construction and the maintenance costs of infrastructure facilities”.

He reminded that after the meeting of the State Council Presidium in November 2009, he gave instructions to enact appropriate regulations for the development of highway motor- and railway traffic, to perfect the use of concession agreements and expand their forms in accordance with foreign experience.

“I also requested regulatory provision for procedures f state orders placement and conclusion of long-term contracts to build, repair and maintain transport infrastructure facilities. In addition, I gave instructions to prepare proposals for organization of stable financial support for construction, repairs, and maintenance of roads at the cost of special-purpose funding sources,” the President said.

Medvedev also stressed it is critical to upgrade the road construction technologies, ITAR-TASS reports. “It must be done as soon as possible,” he said. He also considers it to be economically viable “to shift to tenders for construction and subsequent maintenance of roads, which is expected to reduce budget expenses”.