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Public-Private Partnership

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

For the last 4 years Moscow has been leading in the rating of Russian regions in terms of the level of PPP development (rating of PPP regions) by the Russian Ministry of Economic Development. The total volume of PPP contracts concluded by the city since 2013 exceeds RUB 1 tn.

The city supports investment initiatives of any scale and creates conditions for the use of all available PPP forms and mechanisms.

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Definition of PPP

Public-private partnership is a way to develop public infrastructure based on long-term interaction between the state and business, in which the private party is involved not only in the design, financing, construction or reconstruction of the infrastructure facility, but also in its subsequent operation (provision of services at the created facility) and/or maintenance.

The purpose of PPP is from an economic point of view to stimulate the attraction of private investments in production of services, works and consumer goods, which should be ensured by public entities through related budgets, and to reduce the state participation in economic activity when the same tasks can be more effectively fulfilled by business.

From the legal point of view, it is about relations between public (Russian Federation, Russian region, municipality) and private entities. These relations are based on a public-private partnership agreement or concession agreement concluded between them, which are civil law contracts by their legal nature.

Basic Principles of PPP Project Implementation in Moscow:

PPP IMPLEMENTATION IN MOSCOW

PPP FORMS

50+ projects in various sectors are being implemented under PPP agreements in Moscow (Rosinfra database of infrastructure projects).

  • concession agreements;
  • life cycle contracts;
  • rent with investment obligations;
  • long-term contracts with an investment component;
  • corporate PPP form;
  • special investment contracts;
  • PPP agreements;
  • investment promotion and protection agreements;
  • state contracts for the supply of goods with localization of their production (off-set contracts).

Preparation and support of PPP projects being implemented in Moscow is provided by the Moscow City Investment Agency.

Within its competence, the Moscow City Investment Agency:

  • develops legal schemes for PPP projects implementation;
  • assesses the economic feasibility of PPP projects implementation;
  • considers investor requests on issues of PPP project implementation;
  • cooperates on PPP project support issues with federal and regional executive authorities, utility providers, credit and financial institutions, development institutions and other organizations;
  • provides consulting and organizational assistance to investors on PPP projects implementation.

KEY PPP PROJECTS

PPP SITES ON THE MAP

Sites on the map

CONCLUDING PROCEDURE FOR CONCESSION AGREEMENTS

Decisions on the conclusion and preparation of concession agreements in Moscow are made in accordance with Moscow Government Resolution # 720-PP of August 4, 2009 “On preparation of concession agreements implemented in Moscow.”

An entity advancing a private initiative to conclude a concession agreement may contact the Moscow Department of Investment and Industrial Policy for a consideration.

SIGNING PROCEDURE FOR PPP AGREEMENTS

The authorized PPP body in Moscow is the Moscow Department of Investment and Industrial Policy.

A private partner is entitled to send its PPP project proposal both to a public partner, which is an industry-specific or functional executive Moscow authority managing the area in which the PPP project is intended for implementation, and to an authorized PPP body.

More details: Private initiative consideration and approval in Moscow executive authorities

Decisions on PPP projects implementation shall be made in accordance with the procedure set by Moscow Government Resolution # 26-PP dated February 3, 2016 “On preparing public-private partnership projects, making decisions on public-private partnership projects implementation, executing and monitoring the fulfillment of public-private partnership agreements”.

SUPPORT MEASURES

Concluded CA or PPPA help investment projects to get a Moscow investment priority project status.

The investor may be granted tax and rental benefits for land plots.

The status requires at least RUB 580 m of investments in CA or PPPA.