Spanish company OHL’s Czech unit OHL ŽS has won a €2bn contract from Russian Railways’ subsidiary, the Yamal Rail company, for construction of the Polar Ural rail project.

It involves construction of 390km of un-electrified railway lines from Obskaja to Nadym and Salechard as well as a 2.5km viaduct over the River Ob.

The single line railway line will span from Nadym Obskaja station passing through Salechard City, on the northern end of the Urals mountains between the towns of Salekhard and Nadym to the east.

The project will be implemented in three sections: Salechard-Nadym, Obskaja-Salechard and the bridge over the river Ob.

Construction on the project is scheduled to begin in 2012 and be completed in 2015 while the Czech Export Bank (CEB) will provide strategic financing guarantees for the rail line.

OHL ZS said the project will be start after the closure of full funding of the project as the contract is closely connected with the signing of the mandate of the Czech Export Bank to finance the project with Russian banks.

The project is expected to facilitate transport of mineral ore from ore rich Ural region.

The entire project is being developed by Jamal Railway, owned by Russian Railways, Gazprom and Polar Urals Corporation – Industrial Urals (KUPUP).

As part of the deal signed between Russia and Czech Republic, Czech side will construct about a half of the 700-km-long railway.

OHL ZS will implement the project along with several Czech companies, including ŽPSV (OHL Group subsidiary), DT Prostejov, Trinecké Železárny and Vítkovice.

After signing the contract, OHL ZS CEO and chairman Michal Stefl said this contract extends the possibilities of collaboration of Czech companies on new projects in the Russian Federation.

Following the signing of the Russian contract, OHL’s project backlog increases to €3.915m (without VAT) ensuring future growth and strengthening its position in civil works contracts, the company said.

Caption: The railway will run through mountainous terrain and landscapes, such as these, near the village Saranpaul in the Northern Urals.