Moscow development group Krokus has been designated the general contractor for the $1.23bn Far Eastern Federal University construction project to be carried out on Vladivostok’s Island of Russky, newspaper Vedomosti reported today, citing Krokus president Aras Agalarov.

According to the company president, Krokus will develop 200 hectares of land to build the 500,000 sq. m project.

He said that construction would be completed within three years.

According to Vedomosti, the project has to be commissioned by the 2012 Asian-Pacific Economic Cooperation (APEC) summit to be hosted on Vladivostok’s Island of Russky.

The University buildings will be reportedly used as a conference center and a press center during the summit.

The RF government has allocated a total of $8.4bn for the preparation for the Vladivostok event, Vedomosti added.

As the newspaper also emphasized, contractors for all most important APEC construction projects are designated as such by the RF government directly without any prior tender.