Client Bulletin
Concession Agreements Law to become more investor-friendly in 2015
The first quarter of 2015 will bring important changes to the Russian law governing concessions agreements. On 21 July 2014, the State Duma amended Federal Law 115-FZ 21 of July 2005, On Concession Agreements, (herein cited at the “Concession Agreements Law”) to introduce a number of innovations into public-private partnerships. These provisions will take effect on 1 February 2015 and 1 May 2015.
Lawyers in the ART DE LEX public-private partnerships practice view these amendments as giving the private partners in concessions agreements significantly more rights and opportunities.
The most significant goal of the amendments is to create an environment that makes private investment in concessions projects on the federal, regional and municipal levels even more attractive. These innovations include:
- the introduction of “private initiative” concessions
- an expansion of the opportunities for the award of concession agreements without formal competition
- extended warranty rights for concessionaires to protect the expected return on investment
- multi-object and multi-grantor concession agreements
- a set grantor’s fee for all objects of a concession agreement