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. Last Updated: 07/27/2016

New Metro Station Gets Private Funds

Itar-TassConstruction laborers working in Trubnaya metro station in central Moscow, which is slated to open later this year.
The city's first privately funded metro station will open in 2009, the head of the city metro, Dmitry Gayev, said at a City Hall meeting.

The Myakininskaya metro station, which is to be constructed with money provided by leading Moscow retailer Crocus Group, will link the section between Strogino and Volokolamskaya on the Light Blue Line and will cost 600 million rubles ($23 million). The station will be built in the vicinity of the retail group's Crocus Expo exhibition center.

Leonid Bratkin, a spokesman for City Hall's economic policy and development department, said Wednesday that the city constantly sought to attract private investment on "a mutually beneficial basis."

"This particular project will spur development of business centers in areas around the city in keeping with Mayor [Yury] Luzhkov's policies," Bratkin said. "The city will continue to invite private investors to take part in the construction of metro stations and other transportation infrastructure."

A Moscow metro spokeswoman said private companies had been reaching out to the city government to help in providing much-needed new stations.

One recent example was the renovation of Mayakovskaya metro station, financed exclusively by the Russkoye Zoloto industrial group.

"There is another private investor that volunteered to construct the Tekhnopark metro station, between the Avtozavodskaya and Kolomenskaya stations [on the Green Line]," said the metro spokeswoman, who declined to give her name.

Gayev, speaking Tuesday, said the city planned to build eight new metro stations at a total cost of 103.5 billion rubles as part of the transportation development plan from 2007 to 2010.

Four of the eight new stations -- Trubnaya, Sretensky Bulvar, Kuntsevskaya-2 and Strogino -- are slated for completion this year, Gayev said.

The importance that private financing could come to have in modernizing and extending the metro network was hinted at by Luzhkov, who complained Tuesday that the federal government had not earmarked enough funds for that purpose.

Luzhkov added that Crocus Group would hand over the entire station to the metro authorities after completion, Kommersant reported Wednesday.

Analysts said it was a standard practice for private firms operating in Moscow to undertake project in collaboration with City Hall.

"One reason they do such projects is to have good relations with the local government, since any kind of development projects always require the consent of City Hall," Alfa Bank retail analyst Brady Martin said.

Crocus Group, which includes business interests in fashion retail, department stores and large-scale trade and exposition centers, said Wednesday that the official in charge of overseeing the project was unavailable for comment.