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This volume presents the history and current state of the public-private partnership (PPP) sector in Russia. It analyzes the legal and institutional framework of PPPs as well as approaches and best practices for public administrations at federal and regional level to promote PPPs. Special attention is given to the management of PPP projects in different phases of their life cycle and to the legal and financial structuring of PPP projects. In addition, the contributions highlight best PPP practices in various sectors - from transport infrastructure to information technology - and also discuss international aspects of PPP. The volume is aimed at scholars in economics and public administration as well as public decision-makers interested in modern trends in the Russian economy and the development of successful business development.



History and the Current State of Public-Private Partnership in Russia


Chapter 1. Concession Agreements in the Russian Empire. History of Concessions in the USSR. Evolution of Approaches to PPP in the Modern History of the Russian Federation

Development of the Public-Private Partnership institute in Russia in different historical periods is explored. Key stages and principal forms of PPP mechanisms in the Russian Empire, the USSR and in modern Russian Federation are investigated. Concession practices in its historical perspective, the impact of PPP projects on the development of various industries, as well as on the economy as a whole, is estimated. The paper also analyzes the evolution of legal and regulatory framework of concessions in post-revolution Russia.
Pavel L. Seleznev, Maria A. Ivanova

Chapter 2. Infrastructure Gaps and Investment Needs. Current State and Key Trends of PPP Development

The present state of infrastructure in Russia is reviewed in detail. On the basis  of assessment of investment needs in infrastructure sectors the degree of sufficiency of the current and projected levels of investments required to eliminate existing infrastructure gaps is investigated and evaluated. Key factors behind PPP market development are identified. Current situation of PPP in Russia is analyzed from different angles—dynamic of project number, projects investment capacity, sectoral structure, implementation level, organizational and legal forms of PPP projects, etc. Major trends in PPP development are systematized and revealed. Conclusions on Russia’s compliance with global PPP development trends are presented. Estimates of demand for PPP mechanisms in development of infrastructure in Russia are made. At the same time, an analysis of specific issues impeding the development of PPPs in Russia is conducted and recommendations on elimination of existing barriers and dynamization of further development of PPP are suggested.
Pavel L. Seleznev, Alexander V. Poroshin, Natalia Chubaeva

Regulatory and Legal Framework of PPP in Russia. Forms of PPP in Russian Practices


3. Common and Special Legislation on PPP. Comparative Analysis of Federal Law on Concessions (Law-115) and Federal Law on Public-Private and Municipal-Private Partnerships (Law-224)

Basic legal acts of common and special legislation on public-private partnership in Russia and specific features of common and special legislation on public-private partnership are introduced. General schemes of implementation of PPP projects under the Federal law on concession agreements (115-FZ) and the Federal law on PPP (224-FZ) are presented. Based on a comparative analysis of the rules and provisions of 115-FZ and 224-FZ, distinctive features and most important differences of concession agreement and PPP agreement are identified and systematized. On the basis of analysis of the legal framework, specific recommendations on improvement of the federal and regional PPP legal framework are proposed.
Elena B. Zavyalova, Agnessa O. Inshakova, Evgeny Y. Moiseichev

4. Organizational and Legal Forms of PPP. Concessions, PPP Agreements, Alternative or “Quasi”-PPPs

Various organizational and legal forms of implementation of infrastructure projects in the Russian Federation are investigated and systematized. The main characteristics of regulatory documents, advantages, and disadvantages of individual legal forms, major factors behind the choice of a PPP form as well as the key rights and obligations of the parties are identified and defined. The statistical data and examples characterizing the practice of use of different organizational and legal forms for the implementation of infrastructure projects in Russia are introduced.
Maxim V. Tkachenko, Elena B. Zavyalova

PPP Governance in Russia


5. Strategic Planning in Russia. Transition to Formation of Long-Term Infrastructure Plans

The concept of infrastructure strategic planning and its immanent characteristics are explored. Current world practices of state infrastructure planning are introduced and generalized. The paper analyzes and illustrates the existing system of strategic planning of infrastructure in Russia both at the Federal and regional levels, and provides concrete practical examples of relevant government documents. Based on the study of relevant international experience and current situation in Russian economy, key problems of Russia’s approach to the governance of infrastructure development are identified, and specific recommendations on possible ways to improve efficiency of the infrastructure planning system are proposed.
Oleg V. Ivanov, Vladimir V. Piskunov

6. PPP Governance at the Federal and Regional Level

The system of public-private partnership governance at the Federal level in Russia is investigated. Focus of analysis is concentrated on the major PPP units, its core functions, and interaction. Especially, important role of the National PPP Center and key directions of its activities are explored. Emerging instruments of public support for PPP projects are systemized and studied. In regard to PPP governance at the regional level, results of PPP rating of regions are introduced. PPP activities of the regions through the prism of achievement of the integral indicator of PPP development are analyzed. Methodology of calculation of the indicator and its component factors are introduced. Major trends in PPP development in the regions are identified. The analysis of regional PPP institutional environment and legal framework brings light on key areas of success and main weaknesses that still remain but can transform into important points of growth in the coming years.
Oleg V. Ivanov, Agnessa O. Inshakova, Alexander V. Poroshin

Chapter 7. Instruments of Government Support for PPP Projects

The issues of government support for infrastructure projects implemented on the principles of public-private partnership are studied. General classification of public support instruments is offered. Financial and non-financial instruments used in world practices and in the Russian Federation, including direct and indirect financing of projects, state guarantees and benefits, administrative and methodological support of market participants are classified and analyzed. Based on the study of relevant international experience and current situation in Russia, major existing problems are identified, and recommendations are made on possible ways to improve the effectiveness of the system of support for public-private partnership projects in Russia, including the creation of separate specialized financial institutions.
Vladimir V. Piskunov, Evgenia A. Starikova

Project Management. Life Cycle of a PPP Project. Key Stages and Tasks


8. Preparation and Assessment of PPP Projects

This paper details the stage of preparation and approval of the PPP project, including an assessment of the effectiveness and justification of the comparative advantage of the chosen form of implementation, taking into account the requirements of legislation and current market practice in the Russian Federation. The authors formulated major national specifics and basic approaches to key sub-phases of preparation of a PPP project: concept development of a PPP project, the analysis of the conditions of its realization, the legal and financial structuring, evaluation of the effectiveness and substantiation of comparative advantages.
Vasily A. Marinin, Nikolai V. Studenikin

9. Selection of a Private Partner for PPP Project Implementation. Launch of PPP Projects Under “Unsolicited Proposal” (Private Initiative)

A detailed analytical review of the legislative regulation of the procedures for the preparation and conduct of the competition for the selection of a private partner in public-private partnership projects used in the Russian Federation is provided. Research of the launch of PPP projects under a private initiative is conducted. Systematized features and advantages of unsolicited proposals’ system are analyzed and compared with international practices.
Evgeny Y. Moiseichev, Nikolai V. Studenikin

10. Commercial and Financial Closure. Monitoring and Control of PPP Projects Implementation

The paper analyzes the features of the project life cycle at the stages of commercial and financial closure, control and monitoring of implementation. Among these features, the procedures provided for by the legislation and their sequence, conditions, and mechanisms for successful movement of the project from the moment of signing the agreement to the signing of the financing documentation and further to the organization of effective control and monitoring of its implementation are explored. The composition of procedures and documents at key points of appropriate stages of the project life cycle, factors, and conditions for the qualitative finalization of specific processes, as well as the main risks and ways to minimize them are considered.
Alexander V. Poroshin, Nikolai V. Studenikin

PPP Projects in Specific Sectors


11. PPP Mechanisms in the Transport Infrastructure of Russia

Current state and major problems of transport infrastructure—one of the largest segments of the Russian economy—are examined. New trends in government approaches to public administration of the sector are explored. Conclusion on the objective need for the use of PPP mechanisms to reach ambitious goals of government transport policies is made. Application of PPP mechanisms in transport infrastructure is explored. It is noted that the transport industry in Russia is the most advanced in terms of the application of public-private partnership mechanisms. Noteworthy that both the sectoral range of PPP projects and the variability of payment mechanisms and forms of PPP are expanding. The most representative cases of implementation of PPP projects in the sector are presented. On the basis of the study, it is concluded that PPP mechanisms are in demand in various sectors of transport infrastructure. The most promising areas of application of PPP mechanisms and key drivers in the sector are evaluated. Specific recommendations on the use of PPP mechanisms in transport infrastructure are made.
Vasily A. Marinin, Ellina A. Shamanina

12. PPPs in Social Infrastructure. Problems and Perspectives

Social commitments account for the biggest share of the Russian budget expenditure. However, there is an evidence of insufficient budget spending both on regional and federal levels, though the demand for better social services is growing. The only way to eliminate this imbalance is to find the alternative source of financing social commitments by private funds, mainly through public-private partnerships. The emphasis should be set on the social infrastructure development. “Social infrastructure” includes such objects as infrastructure objects in health, education, social security, culture, tourism and sports.
Elena B. Zavyalova, Agnessa O. Inshakova

13. PPP—A Key to Salvation of Russian Communal Utilities Sector?

Intensive introduction of PPPs in communal utilities sector of Russia in recent years not without reason can be called “a quiet revolution” carried out by the authorities. Mechanisms of public-private partnership in the communal utilities sector, leading in Russia in a number of PPP projects, are investigated and systematized. The paper describes major problems faced by the sector and key measures taken in recent years by the state to attract private investment. Data characterizing quantitative and qualitative changes in the use of PPP mechanisms in the Russian communal utilities sector are also presented. Specific features of PPP projects in communal services are introduced.
Evgeny Y. Moiseichev, Maria A. Ivanova

14. IT—New Horizons in Application of PPP Mechanisms in Russia

Innovative information and communication technologies penetrate all spheres of public life in the modern world. IT technologies are one of the basic factors of competitiveness not only for an individual company but also for a country in the world market. At the same time, the development and implementation of digital technologies require significant financial investments, as well as professional, specialized knowledge and skills in this area. In the conditions of economic and financial instability observed in many countries of the world today, the financing of IT projects is becoming a heavy burden for the state budget. Consequently, in many countries, the role of mechanisms of public–private partnership (PPP), particularly, in the development of IT infrastructure, is growing. The inclusion of IT projects in the PPP perimeter is becoming a profitable solution for the participants of such a partnership. On the one hand, the public sector, which receives a ready-made solution with the ability to pay for it by installments, on the other hand, a business that is secured with a guaranteed return on investment. This chapter discusses the features and key areas of PPP mechanism application in IT infrastructure projects, including the infrastructure of “smart cities” in Russia. A description of some features of the legislative regulation of PPP mechanisms in the IT sector of the Russian Federation, as well as typical models for the implementation of such projects with the latest legislative changes, is presented.
Maxim V. Tkachenko, Ellina A. Shamanina

International Aspects of Public-Private Partnership in Russia


15. Public–Private Partnership in the Post-soviet Space: Can It Play the Role of an Integrator?

Public–private partnership is of increasing interest in the post-Soviet space. The countries of the former USSR see PPP as an effective tool for infrastructure development solving many socio-economic problems, promoting sustainable economic growth, and improving the living standards of the population. At the same time, PPP development in the former USSR countries is still mainly of the “vertical” model, providing for combining of efforts of the state and business in the national framework. Development of PPP “horizontally,” i.e., giving it a supranational, multilateral character could be useful for these countries not only in terms of promoting development of national infrastructure, but also in terms of expanding the field of their economic cooperation both bilaterally and within the framework of economic associations in which they participate (EAEU, SCO, etc.), to consolidate their efforts in the implementation of mutually beneficial transnational infrastructure projects, as well as to cooperate in achieving the UN sustainable development goals. Based on the study of relevant experience, it is concluded that it is possible and expedient to strengthen mutual cooperation of former USSR countries in the field of PPP by harmonizing their legal and methodological framework, establishing practical cooperation in the implementation of transnational projects of mutual interest.
Oleg Ivanov

16. Public–Private Partnership as an Instrument to Implement the Sustainable Development Goals in the Developing Countries

The 2030 Agenda for Sustainable Development (the 2030 Agenda) actualized the necessity to employ the effective and innovative mechanisms of development financing. The global community has currently faced the task of searching for new formats of cooperation between the state and business that will prove to be most effective in terms of attracting private investment in the interests of the Sustainable Development Goals (SDGs) implementation in the developing world. The chapter concentrates on the problem of framework formulation for interaction between the state and the private sectors in the interests of SDGs implementation in developing and least developed countries. In this study, the state is understood to be the authorized state agencies specializing in providing foreign aid to recipient countries (donor agencies). It also reviews the current practice of collaboration between the private sector and the donor government agencies and implementation of the corresponding public–private partnerships in the recipient countries aimed at the achievement of the SDGs in the developing world.
Evgenia A. Starikova


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