PUBLIC PRIVATE PARTNERSHIP

DEFINITION OF PPP

The development of public-private partnership (PPP) and the attraction of private investment in infrastructure sectors is one of the priority areas of Moscow's investment policy.

For three years (2016 - 2018), Moscow has ranked No. 1 among Russian regions in terms of the PPP development (PPP rating of regions), according to the National PPP Center and the Russian Ministry of Economic Development. The total volume of PPP contracts the city has concluded over the past 5 years is about RUR 900 bn.

The city supports the investment initiatives of any scale and creates the conditions making it possible to use all available PPP forms and mechanisms involving both private and budget investments.

BASIC PRINCIPLES OF PPP PROJECT IMPLEMENTATION IN MOSCOW:

  • variety of PPP forms used;
  • imposing commercial risks on the investor (disclaimer of sales guarantee or revenue volume);
  • sharing unknown risks between the city and the investor;
  • non-interference in the operating activities of the investor;
  • thorough assessment of future risks and detailed structuring of the project.

The city has created an internal competence, the State Budgetary Institution Moscow City Investment Agency, one of the main activities of which is the comprehensive support of the preparation and implementation of the PPP infrastructure investment projects.

PPP FORMS

PPP FORMS USED IN MOSCOW:

  • concession agreements;
  • life cycle contracts;
  • preferential lease with investment commitments;
  • long-term contracts with an investment component;
  • corporate PPP;
  • special investment contracts.

In Moscow, more than 50 projects in various sectors are being implemented under PPP agreements (Rosinfra infrastructure projects database).

KEY PPP PROJECTS

CONCLUSION OF CONCESSION AGREEMENTS

Decisions on the conclusion and the preparation of concession agreements in Moscow are made in accordance with Moscow Government Decree # 720-PP dated August 4, 2009 «On preparation of concession agreements implemented in the city of Moscow».

An individual advancing a private initiative to conclude a concession agreement may address the  Moscow Department of Investment and Industrial Policy, for his initiative to conclude a concession agreement to be considered.

For further information see: Private Initiative Review

The projects implemented under PPP concession agreements may be assigned the status of a Moscow investment priority project.

For the status to be granted, the volume of investments under a concession agreement or a PPP agreement shall be at least RUR 500 m.

The status assignment allows to establish appropriate tax and land rental benefits.

SIGNING OF PPP AGREEMENTS

The authorized body in the field of public-private partnership in Moscow is the Moscow Department of Investment and Industrial Policy.

A private partner is entitled to send his public-private partnership project proposal both to a public partner, which is an industry-specific or functional executive body of Moscow managing the area in which the public-private partnership project is planned to be implemented, and to an authorized public-private partnership body.

For further information see: Private initiative review and approval in Moscow EA

The decisions on the public-private partnership projects implementation shall be made in accordance with the procedure established by Moscow Government Decree No. 26-PP dated February 3, 2016 “On preparing public-private partnership projects, making decisions on public-private partnership projects implementation, executing and monitoring the execution of public-private partnership agreements".

CONTACTS

Artyom Barashev

Deputy Director for PPP

City Investment Management Agency
Government of Moscow

Phone:+7 (495) 691-1724
Email: BarashevAS@mos.ru

Timur Shakirov

Head of Investment and PPP Legal Support Project Office, Ph.D. in Economics

City Investment Management Agency
Government of Moscow

Government of Moscow
Email: shakirovTA@gaui.mos.ru

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