This presentation by Maria YARMALCHUK was made at the 7th Meeting on Public-Private Partnerships held on 17-18 February 2014. Find more information at http://www.oecd.org/gov/budgeting/ppp.htm

1. PPP: current status & perspectives
18 february 2014
Public Governance Committee OECD
Maria Yarmalchuk,
Department of investment policy and development of PPP

2. The Federal Law of 21 July 2005 № 115-FZ
"On Concession Agreements"
Legislation on concessions
 The ability to implement projects using BTO model.
Legislation contains a limited list of objects of the agreements:
- objects of transport infrastructure (road, port, railway and other)
- social infrastructure (health, education, culture)
- production facilities, transmission and distribution
of electric and thermal energy
- utilities
 Approved 12 model concession agreements stipulated by the Law.
 Concessions are concluded at the federal, regional and local levels,
depending on the level of decision-making and risks in project
implementation
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3. Concession agreements
Quantity of concession agreements
concluded in 2009-2013
1500
2013 breakdown by sector
Utilities,
housing
Municipal
infrastructure
16%
1000
Energy
infrastructure
22%
Healthcare,
education,
culture, sport
Social
infrastructure
infrastructure
35%
Transport
infrastructure
27%
500
0
2009
2010
2011
2012
2013
3

4. Improvement of the concession law
 Conclusion of concession agreements with the subsequent fee
of the grantor with respect to any kind of objects
 Expansion of the list of objects of the concession
 Private initiation of concession agreement
 The guarantee of rights and lawful interests
of private partners and creditors
 Are able to participate in concession agreement
several public entities
 other
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5. Regional laws on PPP
The absence of regulation
of contractual PPP instruments
at the Federal level
Russian regions began to develop
and adopt regional laws on PPP
Regional laws on PPP enacted in 67 regions of the Russian Federation
Half of them are declarative
Half of them are functioning
Even functioning laws collide with:
Land Code
Legislation on Competition
Legislation on traditional procurement
53 agreements have been concluded on the basis of regional PPP laws
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6. Factors limiting the development of PPPs in Russia
 Limited number of PPP models utilized
 Risk of recognition of regional PPP law invalid
 Budget code constraints
 Limited possibility to attract loan financing
(lack of possibility of the object ownership and pledge)
 Unable to allocate publicly owned property, including land plots,
for purposes of PPP project within single tender procedure
 Lack of unified terminology
 The lack of a unified process of selection, preparation,
approval of projects, and also the organization of tender procedures
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7. The bill of PPP low
The highlights:
 Opportunity for public partner utilize different forms of PPP
 Introducing the notion “authorized government body”
responsible for PPP
 Conclusion of PPP contract beyond single tender procedure
 Opportunity for conclusion of PPP contract on several infrastructure
objects simultaneously
 Opportunity for public partner, private partner, and financing company
to make direct agreement for step-in right mechanism
 The pledge of the object of agreement is not limited
 The list of infrastructure objects constructed (rehabilitated) according
to PPP project is not limited
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8. Forthcoming PPP legislation development
Adoption of:
 preparation order of PPP agreements
 methods and criteria for assessment of PPP project effectiveness
 procedure of monitoring and statistical accounting of PPP projects
 PPP project’s KPI
 procedure of public debates on decisions of the authorities
on the conclusion of PPP agreements
private partner selection guidelines
professional development programs (educational programs)
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9. PPP Projects in Transport System
Planned projects and projects which are being implemented
Project
Investmets, billion
USD
High-speed Railroad Moscow - St.Petersburg
18,8
International transport corridor "Europe - West China"
18,4
Railroad "Prohorovka - Batayisk"
16,8
Federal road "M-4 Don"
7,7
Federal road "M-4 The Urals"
6,5
By-pass Railroad in Omsk
4,7
Railroad "Polunochnoye - Salekhard"
4,1
Railroad "Komi - Arkhangelsk (Belkomur)"
4,1
"Vostochniy" Spaceport (First Stage)
4,0
Murmansk transport nodal point
3,5
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10. Thank you for your attention!