RZD fails to fund implementation of investment program until 2020
Published: Tue, 2014-11-18 16:04Russianm RZD experiences a shortage of funds for the implementation of its investment program until 2020, according to the company.
At present total value of RZD’s investment program is estimated at 2.89 trillion rubles (US$80 billion), about half of which (RUB 1,4 trillion), according to the company’s plans, should be provided by the state.
It is planned that a significant part of these funds will be invested in the modernization of the country’s railway infrastructure, as well as the expansion of Baikal-Amur Manline and the Trans-Siberian Railway.
According to RZD, so far, the government has agreed to provide only 40 percent of the requested amount - 556 billion rubles. In the case of approval of the remaining funds, the company's revenue will grow by nearly 60 percent to 2.83 trillion rubles by 2020.