Saint Petersburg to pay cancellation penalty for Orlovsky tunnel

Arbitration Court of Moscow denied the Administration of Saint Petersburg its request of reversal of the judgement of Paris office of the International Court of Arbitration on penalty of 1.2 billion rubles, which City Government owes to “Nevskaya Concessionary Company”  for the not implemented project of the Orlovsky tunnel.

The development of the project of the road tunnel under the Neva River bed between Piskarevsky prospect and the Smolny embankment started in 2009.

The customer considered options of the construction of two-level tunnel of the large diameter and two parallel tunnels of the smaller scale.

The length of the route is 1 km.

“Nevskaya Concessionary Company” was in charge of the implementation of the project, which was supposed to be carried out in the form of public-private partnership on the basis of the concession agreement.

The governor Georgy Poltavchenko called off the project in 2011, alluding to the excessive  for the city budget cost (115 billion rubles).

The project remained on paper, “Nevskaya Concessionary Company” estimated its loss and petitioned the arbitration court.

The judgement in plaintiff’s favor was delivered in February of 2015.

The City Government tried the arbitration court of Moscow in April of 2015 to reversal the judgement. That’s when the amount of the penalty fee was first announced.

Having considered the circumstances of the case, Arbitration Court of Moscow dismissed Saint Petersburg Government’s claim. 

Two-level tunnel under the Neva River could help with transport challenges (Source: www.smu9.com)