Информационный обзор практики Государственно-частного партнерства (Март, 2013)
federal legislation
Proposed amendments to federal law would create favorable conditions for attracting private investments
A bill now under consideration in the State Duma would extend the scope of concession agreements and create favorable conditions for attracting private investments. Bill No. 449127-6, “On Amending the Federal Law ‘On Concession Agreements and Certain Legislative Acts of the Russian Federation’”, introduced on 11 February 2014, would amend current Russian federal law to include an opportunity to enter into a concession agreement under the initiative of a private party without a competition. The bill also provides for an open list of objects of the concession agreement.
Proposed measures to benefit the private partner would also include:
- the possibility of establishing payment by the concession grantor in respect of the whole list of objects of the concession agreement;
- an expansion of the list of mandatory conditions of the concession agreement, such as the inclusion of gross proceeds received by the concessionaire under the concession agreement;
- providing additional guarantees of the payback period for concessionaire and obtaining funds provided by the concession agreement;
- the ability to change the material terms of the concession agreement at the request of the concessionaire in certain cases, specified in the bill;
- an opportunity for several persons to participate on the side of the concession grantor;
- the possibility of renewal of the concession agreement for no longer than 5 years; and
- prerogative rights of the concessionaire if the objects of the concession agreement are listed for sale after the expiration of the term of the agreement.
projects
ART DE LEX to advise the ARKS group on a waste water utilization project in Moscow
The ART DE LEX Law Firm has been chosen as a consultant for the ARKS Group (http://www.arks.ru/) in a PPP waste water utilization project in Moscow. The project will create a modern system of circulation of urban waste water, which will meet international standards, eliminate Moscow’s waste water from the list of wastes, decontaminate sediments and reduce their volume by 75%, as well as eliminate the risk of environmental liability. The total investment cost of the project will be about RUB 5 billion.
Competition for the construction of Kutuzov Avenue relief road announced in Moscow
On 3 March 2014, authorities announced a competition for a concession agreement to construct the northern relief-road of Kutuzov Avenue from the Molodogvardeiskaya transport interchange to the Moscow International Business Center, also known as "Moscow City.” The total investment cost of the new road will be about RUB 40 billion. The concessionaire must invest its own funds amounting to not less than 15% of the total costs.
The relief-road will be about 11 km long and will transport between 30 thousand and 40 thousand cars per day. The tolls will be set by the private investor, subject to agreement by the city government.
The results of the competition will be announced in October.
Competition for the construction of a railway to Siberian coal deposits announced
On 13 March 2014 the Tuva Energy Industry Corporation announced a tender for the development of documentation and construction of a railroad to the Elegest coal region in Tuva, to include Elegest, Kyzyl, and Kuragino. The tender will be held in the form of request for proposals. The maximum contract price has not been set, however the value of the project is estimated at RUB 156 billion. Applications will be accepted until 14 April 2014, and construction of the 410 km railway should be completed by the first quarter of 2018.
Engineering survey for construction of a bridge in the Crimea to be held before the end of 2014
In February 2014 the Supervisory Board of Autodor established a subsidiary to prepare a draft plan for a bridge across the Kerch Strait. The new company has already issued a request for proposals for engineering surveys for construction of the Kerch bridge. The initial cost of the works will be RUB 384.3 million. The results of the competition will also determine whether the bridge will be an auto highway or combined with a railroad. According to preliminary estimates, the minimum cost of the bridge will be RUB 50 billion. It is possible that the project will be implemented through PPPs.
Territories of advancing social and economic development to be created on Sakhalin
Two areas on Sakhalin, specifically in Kholmsk and Nevelsk, have been pre-selected to create territories of advancing social and economic development. The Ministry of Economic Development will further explore the possibility of other areas of the island region and provide proposals for the establishment of zones of advanced development. Ideas also to create technology parks in the Far East are being developed.
Moscow aviation hub may be developed with NWF under a concession agreement
The Directorate of the Moscow transport hub, in conjunction with other interested agencies, have developed options for concession agreements with the National Welfare Fund (NWF) to develop the Moscow aviation hub. The shortage of funds for reconstruction and construction of airfield infrastructure is estimated at RUB 34 billion, of which RUB 15.5 billion is allocated to Sheremetyevo, RUB 13 billion to Domodedovo, and RUB 5.5 billion to Vnukovo . This funding gap should be closed by using PPPs and NWF funds.
The winner of the competition for the construction of a bridge across the Lena River to be known on 11 April
The Federal Road Agency Rosavtodor has completed the receipt of bids for the construction of a bridge across the Lena River near the town of Yakutsk. Rosavtodor will announce successful bidder by 11 April 2014. Applications from Transport Concessions (Saha) and Yakut Bridge Construction Company LLC were received for consideration.
Japanese corporation to invest in Primorsky grain terminal
The project memorandum for the construction of a grain terminal in Primorsky Krai was signed during the recent Sixth Russian-Japanese Investment Forum.
The Russian participant in the project has already bought 100 hectares of land in the Khasan district of Primorye, and the integration of the project into the federal target program for the development of ports is underway. The project will be implemented through public-private partnerships. Private investment is estimated at US$ 290 million dollars. The terminal capacity in the first phase will amount to 5 million tons by 2018, and 10 million tons in the second phase by 2020. The terminal will be oriented for the transshipment of goods in transit from the provinces in the northeastern part of southern China.
Italian investors plan to invest in a light-rail tram to Pulkovo
Italian investors (led by INCS.pa) are interested in the construction of overpasses over the railroad tracks and in the organization of light rail tram (LRT) services on a line between Kupchino and Pulkovo. The LRT project to Pulkovo involves the construction of 11.2 km of track and six overpasses. It is assumed that, in 10 years of operation, the investor will be able to recoup the costs of the project, estimated to be about RUB 15 million, considering the minimum 3% to 5% share in the financing of urban construction. This period is based on the average cost of public transport in St. Petersburg. The project is scheduled for implementation as a public-private partnership.
events
Russian PPP Week
On 11-13 March 2014 the first Russian PPP Week was held at the International Multimedia Center RIA Novosti. Participants discussed basic PPP concepts, the development of PPP legislation, particular features of PPP development in certain sectors of the economy, and issues of participation by foreign investors in infrastructure projects. The PPP Center also presented its latest ratings of the Russian regions for the development of PPPs. The event was attended by heads of relevant federal ministries, members of the State Duma, representatives of public authorities of 52 of the entities of the Russian Federation, heads of leading financial institutions, consulting and commercial entities, and domestic and foreign investors and experts.
Regional PPP ratings announced in Moscow
On 11 March 2014, at a press conference as part of Russian PPP Week in Moscow, the Center for Development of PPP and the Russian Chamber of Commerce, with the support of the Ministry of Economic Development, presented the ratings for PPP development in the Russian regions. The six leaders included the St. Petersburg, Tatarstan, Novosibirsk, Sverdlovsk, Nizhny Novgorod and Voronezh regions. The Leningrad region led the second tier of 16 regions, with the Kaluga region at the bottom of that group. Each region was assessed by three factors: the presence or absence of the institutional environment , experience in the implementation of PPP projects, and the overall level of investment attractiveness of the region.