Schools, Kindergarten, and Hospitals Sacrificed to the Stadium
August 15, 2016
The Smolny [Petersburg city hall] will finance construction of the football stadium on Krestovsky Island twice over. The advances of 2.6 billion rubles that have not been returned by VTB Bank and Transstroy will be issued to new contractor Metrostroy. Schools and kindergartens will have to wait.
To finish the stadium on Krestovsky, the Smolny is ready to sacrifice the completion dates of three dozen facilities, including kindergartens, schools, and hospitals. 2.6 billion rubles, earmarked for social infrastructure, will be “redeployed” to Petersburg’s construction project of the century. City hall is counting on recouping the reinvested funds later, and figures it can afford not to hurry with the construction of public facilities.
The Construction Committee has prepared a draft decree on reallocating its 2016 budget. By law, the agency can redirect up to 10% of the funds in its targeted investment program, i.e., 2.8 billion rubles, a committee spokesperson said on the record.
Off the record, sources at the Smolny have explained that the stadium’s former general contractor, Inzhtransstroy-SPb, has not run through the 3.6 billion rubles it received as an advance. The company can still deliver part of the construction work and purchased materials before August 25, a month after its contract with the city was terminated. But if the city does not succeed in offsetting the entire sum, it will have to try and collect the money either from the contractor or VTB Bank, which issued the guarantee for completion of the work.
Experience shows it is not worth counting on the good will of companies when it comes to giving back money. The Construction Committee is still in the midst of suing VTB for the return of funds issued under contracts for the construction of indoor ice rinks, which were terminated over a year ago.
A strategy of protracted litigation does not suit the Smolny at all. Completing the stadium before year’s end is a matter of honor to the city government. So the Construction Committee has decided to redeploy part of the funds allocated for new kindergartens and schools to Petersburg’s main construction project. Only facilities whose completion was planned for this year have not been touched.
The city’s calculation is simple. Construction of public facilities will be slowed down a bit for the time being. But when the stadium is delivered at the end of the year, and the monies that were advanced are returned to the budget, the long-awaited construction projects will again be accelerated to a proper speed.
Health clinics and hospitals will be most affected by the budget cuts. The Construction Committee has decided to withdraw nearly a billion rubles from construction of these facilities.
Expenditures on one of the city’s most protracted construction projects, a perinatal center at Maternity Hospital No. 9 on 47 Ordzhonikidze Street, have been reduced by a quarter billion rubles. Doctors were preparing to nurse premature and sick newborns in the facility, and spoke of modern operating rooms and a modern intensive care unit. The building, in fact, was supposed to be delivered at the end of 2015. But now the contractor, Stroykomplekt, owned by former Baltstroy top manager Dmitry Torchinsky and Alexei Torchinsky, has a new deadline: the end of 2017.
People in the suburb of Kolpino will also have to wait for the opening of the new surgical wing at Hospital No. 33. Only one million rubles has been left in this year’s budget for its completion, while 155 million rubles will be transferred to erecting the football stadium. However, the construction site on Pavlovskaya Street has already been idle for a year. The Construction Committee terminated its contract with the previous contractor, but has not yet found a new contractor.
The residents of Kolpino will not have to wait alone, however. Among the facilities where construction will be slowed down are health clinics in Strelna and Krasnoye Selo, an ambulance substation in Metallostroy, and a childen’s tuberculosis sanatorium in Ushkovo.
Funds for new school construction will not be slashed so drastically: only by half a billion rubles. Contractor ETS will have to slow down construction of a school in New Okhta, a massive housing complex on the far side of the Ring Road, near Murino. This year, financing of the construction project will be cut by 230 million rubles. New Okhta is being vigorously developed. Over the past three years, developer LSR Group has completed twenty-four residential buildings into which the city has been moving people on the affordable housing waiting list. But there are still no schools in the district. Parents have to shuttle their children over the Ring Road to the neighborhoods of Grazhdanka, built long ago.
Residents of the housing project on Badayev Street will also have to be patient. The city has stripped their future school of 90 million rubles in financing.
Finally, kindergartens will hardly suffer at all: funding of their construction will be reduced only by 310 million rubles. The biggest loser, to the tune of 130 million rubles, is the future kindergarten in the Golden Bay residential complex, near Tricentennial Park. Its completion has been postponed for a year, until the end of 2017.
The Smolny is even ready to cut funding for construction of a site directly linked to the new stadium: the waterfront near the Novokrestovskaya subway station, currently under construction. The contractor, Leokam, will have its funding for making improvements to the waterfront cut by nearly 240 million rubles. Apparently, the company will have to catch up next year. Under the terms of its contract, it has to deliver the works before the end of 2017.
However, what matters is that the stadium on Krestovsky Island will be delivered before the end of this year, and cost estimates of its construction will not increase, formally speaking.
A total of 42 billion rubles [approx. 582 million euros] have been allocated on the stadium, Petersburg’s principal protracted construction project.
Translated by the Russian Reader