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The flood barrier will be built
The public disapproval of the complex of St.Petersburg flood protection constructions, so called by the experts, nicknamed “the dam” by the angry public, exploded during the summer of 1986. The visiting plenum of the Russian Writers Union was then taking place on the Neva’s banks and Sergei Mikhalkov told the honored audience about the St.Petersburg problem as the taxi driver who had taken him to the session had described it. Well, he was such an authority... Today, it is difficult to find anyone doubting the feasibility, necessity and environmental invulnerability of the project carried out. And there are more than enough reasons for this. They are: the project suggestion contest, which was declared by Gaidar’s government and showed no alternative whatsoever to what we have planned, the commissioning of the main purifying systems for sewage waters located also on the banks of the Neva Bay, the results of various expert commissions, now there are two international ones among them. Also, the environmental customer’s service which was born in pain (it is hard to imagine, how many opponents there were) with its enormous bank of data describing the dynamics of the Neva Bay conditions, the most convincing mathematical models of the processes taking place. And, of course, the devotion of two of our scientists, Antonov and Kasimir Kondratovich, who formulated a very alarming, at the turn of the century, prediction that the city is still subject to threats of catastrophic floods. On November, 25, 1994 the Russian government defined the year of 2001 as the commissioning date for the Flood Protection Complex. General manager of the JSC LenGidroProject Yury Grigoriev shared his thoughts about the transformation of the situation with this construction of such importance to the city in last year’s issue of “Segodnya”. What has happened since? First of all, the experience that our engineers acquired abroad was analysed very accurately: in England, where in south-western parts of the country, using flood insurance money, another flood protection complex is being built; in Venice, where an international consortium is operating and accumulating the funds of various international financial institutes to protect the famous Venice lagoon from floods; in the Netherlands (two of today’s vice governors, I. Artemiev and D. Sergeev participated in that visit), where a number of documents of collaboration with Dutch experts for the development of an entire system of measures for implementing integrated water management in the St.Petersburg region was signed. Second, the Committee for economy and finances has provided really privileged information access conditions for the British firms “Sir Alexander Gibb”, “Ernest and Young” and “Hill Samuel Ltd.” who have been working on the Flood protection complex completion Feasibility Study according to the assignment of EBRD. As a result, considerably convincing reasons for World and European banks for the reconstruction and development funding of the completion of the Flood protection complex with a capacity of 3 meters 45 centimeters, amounting to more than $40 million, were found. This does not solve the city’s problem totally but creates a necessary base to search for additional investments the total amount of which was defined at $836.9 million. Third, all beginnings in the Flood protection complex area that were considered very doubtful, were brought together: the building of a first consignment warehouse in Gorskaya by the firm Mangazea and locating a Baltic customs terminal in the construction management building; the efforts to provide access to Gorskaya for foreign ships that were commenced several years ago; the organization of a cargo shipment terminal to process Soyuzcontract cargo delivered with the ships of JSC “North-West steam-line” using the moor of the former Litke base on the island of Kotlin. The ships working on this base now, were built using EBRD credit. They are compensating the loan money. “Delta-Baltica Ltd.” which is operating the base, has invested more than $500 thousand into the deepening of approach routes and into the construction of a container terminal, practically doubling the cargo processing volumes in one year. It was these beginnings that made the foundation for the work of JSC “LenmorNIIproject” directed towards the organization of seaport terminals on the Flood protection complex. The calculations are confirming the possibility of processing up to 7.46 million tons of imported cargo on the mooring walls of the Flood protection barriers construction bases in parallel with the building, using investments of $17 for every ton of circulating cargo, which is practically three times less than the similar costs on the international market. One of the sources of investments still lacking for the Flood protection complex completion will be the money paid by those who wish to build their terminals basing on the mooring walls, having received them into long-term lease. The negative moments of seaport business organization on the mooring walls of the Flood protection complex were also analyzed. They are, for instance, the poorly prepared agreement for a 49-year lease of part of the moors to an organization which is not playing a key role on the construction site. As a result, it is impossible not only to protect the interests of the construction but simply to cross the coast. 9.5 hectares of the Bronka region were sold practically for nothing to the JSC Neste St.Petersburg. And the expenses for the base infrastructure amounted to about $60 million. The work of the general contractor state enterprise “LenGESS” is far from satisfactory: it only managed to lay 6.9 thousand cubic meters of cement into the constructions of the complex during the last two years while allowing non-coordinated use of 60% of the issued budget funds. The customer itself — “SevMorZashita” administration — was not consistent enough in all these processes — it does not even have a right to conduct commercial activity. That is why the Economic and Industrial policy committee has initiated the development of a modern managerial and financial model of the Flood protection complex completion and lightening of this heavy burden for Russia’s budget which is not in its best days now. The city governor Vladimir Yakovlev has supported our opinion of the problem. The scientists of the St.Petersburg university of architecture and building have also approved of it. The investment funds group “Pioner-Pervy” is interested in it. The plan was coordinated with our colleagues from the committees for finances, building, city property management. The managerial and financial model is based on three sources which will create the necessary investments portfolio: credits of the international institutions listed above with state guaranteed return of all payments within 15 years; budget funding which will be cut three times as a result of the above and the money earned through commercial activity of giving desiring businessmen the opportunity to build seaport terminals and other infrastructure objects in the Flood protection complex area. I am talking of the areas and objects not used for the complex completion, first of all of the three building bases, the designated strip of land for the Ring road, and, maybe, of the forts. All our conclusions are based on the fact that the Flood protection complex without other objects, as an independent structure, cannot be even partially repaid. We are planning the creation of a free economic zone “The sea gate” in this area, offering the potential investors corresponding taxation benefits. If the credit is allocated, the EBRD requirement to choose a building organization for completing the Complex through an open tender will be completely supported. It is possible, that the newly restored “LenGidroEnergoSpetsStroy-Holding” will participate in it. While restructuring the Flood protection complex building organizations, a new managing company will be created to organize and control the financial flows including the fares for passing through the Flood protection complex road, which is now a technological one, but later it will be part of the project, and the promoting of commercial activities on the Flood protection complex objects. The proposed management and financial model was discussed twice in sessions of the St.Petersburg government which has also taken a trip to the construction site. And it was approved. The working group, created by governor V. Yakovlev, headed by first vice governor D. Sergeev, will, maybe, clarify the concrete issues, define the status of the securities, payments with bills of exchange, introduce the flood insurance for physical and juridical persons, located or living in the zone of possible flood, etc. But the apparatus of analyzing the model and preparing the credit agreements is already at work in Russian ministries and departments.
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