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PPP in the format of TOP

What prevents investors from developing in the Far East

PPP in the format of TOP
Special project TORA and Free Port

The role of public-private partnership mechanisms in the development of infrastructure in the Far East was discussed at the "Russian PPP Week" in Moscow.

Nothing unexpected

At the congress "Russian PPP Week" Yakutia was praised with all its might - it was this region of the Far Eastern Federal District that made a real breakthrough, rising to rating regions of the Russian Federation by the level of PPP development by 49 positions and taking 25th place. Yakutia has become a leader among the subjects of the Far Eastern Federal District and has taken a confident position in regions with an average level of PPP development. The secret of success lies in the adoption of fundamental regulatory legal acts in the field of public-private partnerships.

At the panel discussion "The role of PPP mechanisms in the development of infrastructure in the Far East: the current situation, best practices, prospects for application within the ASEZ", initiated by the Ministry of the Russian Federation for the Development of the Far East, Yakutia ruled the ball. It was used as an example for the regions that fell into the group with low attractiveness - Kamchatka Krai and the Jewish Autonomous Region (58 and 62 places, respectively), as well as outsiders in the rating - Magadan Region and Chukotka Autonomous Okrug (79 and 82 places in the rating).

Oleg Skufinsky, Deputy Head of the Ministry for the Development of the Russian Far East, commenting on the rating, noted "a very significant breakthrough in the Far Eastern regions." “This, of course, is primarily the merit of the governors, the merit of the regional teams, the merit of entrepreneurs,” he said. - It is no coincidence that Yakutia is a region with which we signed an agreement at the First International Forum of Entrepreneurs in September last year, this year has been declared the Year of Entrepreneurs and Yakutia takes 1st place. This is a natural development of events. " Skufinsky promised that "next year we will be in the top ten, no doubt, in the dynamics that we are showing today."

New projects and expansion of the regulatory framework allowed the Khabarovsk Territory to take a stable position in the ranking - 31st place with an increase of 41 positions. The Amur Region took 33rd place, showing an increase by 15 positions, the Sakhalin Region - 34th place (plus 3 positions), Primorsky Krai - 37th place and an improvement in indicators by 39 positions. “If the federal government, regional government and entrepreneurs are involved in the process, realizing not only some narrow task, but developments around the entire perimeter, it (public-private partnership - is obtained in a fairly short period. Therefore, PPP is our priority, ”Skufinsky summed up.

The third annual "Rating of Russian regions by the level of public-private partnership development 2014-2015" was prepared by the Ministry of Economic Development of the Russian Federation and the Center for Public-Private Partnership Development with the support of the Chamber of Commerce and Industry of the Russian Federation. When compiling the rating, several parameters were taken into account: the development of the institutional environment, the experience of implementing PPP projects, the investment attractiveness of the region. A total of 586 projects were analyzed (for comparison, in 2014 - 131 projects), which were at various stages - from initiation to operation of the facility. Experience in working with public-private partnership projects is available in 68 regions of the country, in 17 regions - there are no PPP projects even at the initiation stage.

Based on the results of calculating the rating of the regions, the objects were divided into five groups according to the level of PPP development: regions are leaders in the level of PPP development (60-75%), with a high level of development (45-60%), with an average level of development (35-45% ), with a low level of development (25-35%), with a very low level of development (0-25%).

Serious ambitions

Skufinsky said that 61 projects are being implemented in the Far East using public-private partnership mechanisms. The issue of efficiency remains important for the Ministry for the Development of the Russian Far East in this work: for each budget ruble, there should be at least seven rubles of private investment. He stressed that “we also have examples with an indicator of 1 to 17”.

PPP models in the implementation of investment projects in the district will be used in full. “We have very serious ambitions, we want to become the best practice in Russia,” he said.

During the panel discussion, representatives of the PPP Development Center, the Fund for the Development of the Far East and the Baikal Region, regional government bodies discussed the use of PPP mechanisms in the format of priority development territories (TOR). This innovative tool is based on the principle of partnership between the state and private partnership. In accordance with the Law on ASEZ, the state ensures the creation of the infrastructure necessary for residents.

“Investors are closely watching how comprehensively the team of the Ministry for the Development of the Russian Far East works. The adopted law on the territories of advanced development presupposes the TOP regime not only for the territory itself, but also for the necessary infrastructure. That is, it is a tool that makes it possible, in conditions of limited budgetary funds, to make the financial model of the project attractive for the investor. In addition, since last year, we have focused on the implementation of concession projects in the business practice of the Far East, which is why there is a big breakthrough in the regions. Plus, in a number of regions, the necessary regulations have been adopted, "- Skufinsky EastRussia revealed the secret of the success of the Far Eastern regions in the ranking.

According to him, "out of 61 projects implemented on the basis of PPP, 12 regional projects, 49 projects at the municipal level." He did not highlight priority projects, but noted that attention was focused on "international transport corridors (" Primorye - 1 "," Primorye - 2 "," Eastern bypass of Khabarovsk "- they have a very serious effect on the economy ”.

“We analyze the cargo base, logistics flows, carefully work with investors, while working with investors we have instruments for fixing obligations. We listen to them attentively in regard to what they need from the state so that an investor, including a foreign one, is comfortable coming to our territory and making money, ”said the Deputy Minister. Skufinsky specified that the Ministry for the Development of the Russian Far East has signed about 20 memorandums with foreign companies. “This is the beginning of the journey. The memorandum is followed by a deeper study of the issue. These are a number of Japanese, Korean and Chinese companies that are interested in the development of the Far East. And we will choose those that offer the most optimal conditions for Russia's interests, ”he said.

Investors - on a contract

The panellists spoke about the obstacles that hinder the implementation of PPP mechanisms. It turned out that even the advanced Yakutia has a lot of unresolved problems. Despite the fact that the main value of the republic is the subsoil, Yakutia is a small region that does not have a serious business focused on the domestic market. And, of course, there are many restrictions, primarily infrastructural, complains the Deputy Minister of Economy of the Republic Yevgeny Chekin.

“Investors are not standing in line. But the government of the republic is doing quite a lot of work, including informational, with investors, both Russian and foreign. It is clear that at the current moment the focus is on the Asian market, "he shared with EastRussia.

Chekin explained that under the PPP model defined by Russian legislation, the initiator of the project is building its own plant, and the state is building all necessary infrastructure for the budget account of the investment fund.

“Let's take the project stage of the integrated development of South Yakutia. We have successfully implemented it within the framework of the investment fund, but the stage involved only the development of design estimates for the infrastructure. And private investors - the initiators of the projects - invested in their own part, commercial, developed their design and estimate documentation. Is the circuit working? Yes, she's working, ”Chekin said.

He cited the example of the Inaglinsky coal complex under construction - “the first shipment of coal has already started,” the railway to it is being built within the framework of budget financing. The support issue concerned only the power grid infrastructure, but it has already been resolved. “Here is the situation when a clear investor who has already invested and has not tried to leave anywhere. Therefore, the risks are minimal, ”the official continued.

According to Chekin, there are many examples when the infrastructure has been built, but the commercial part has not even started. “I will not name specific cases. Such an approach, when the state, believing the initiators of the project, undertakes an obligation, for example, to build a road, may result in the fact that the infrastructure, except for the initiator (investor), is not needed by anyone. Who needs a railway to the taiga? The power grid infrastructure is also not needed there. Instead of building kindergartens and new hospitals for children, spending this money on raising wages, building normal roads for public use, the state, having spent money on such infrastructure, simply erased them from the economy. We paid all taxes, but they went to an incomprehensible object in the taiga in the event that the initiator does not fulfill his obligations, ”he said. According to Chekin, the problem is the insufficient contractual provision of projects. Therefore, a project-contract approach is required, which is exactly what the Ministry for the Development of the Russian Far East offers.

“The state should, as an entrepreneur, look at any project - whether it is profitable or not to implement this or that infrastructure project. If there is no sense, then it is not worth taking on it, ”the deputy minister summed up.

TORA is a good thing

The panelists agreed that business may sometimes be interested in the development of PDA not only as a resident, but as an investment partner in creating the infrastructure of the site. However, finding initiators of infrastructure construction in some regions is not easy.

Primorye can boast of the proximity of the APR countries, but not in terms of investment. “TOPs are a good thing. I think it will work. But they are not always a necessary stimulant, since there are a lot of businesses that are so marginal that they can make the infrastructure themselves, ”said Yuri Tuktarov, a representative of the Primorsky Krai Investment Agency. He acknowledged that “a common problem in the region is geology, which increases capital costs. Building on the hills is 30-40% more expensive than in the European part. But on Sakhalin and Kamchatka, it is generally 2 times more expensive, because, in addition to hills and geology, they also need to transport building materials from the mainland. Therefore, it is very difficult to conclude such transactions for the participants to come and build everything in the infrastructure, since the capital costs of Primorye are slightly higher. "

Irina Bogdanova, Deputy Minister of the Ministry of Property and Land Relations of the Kamchatka Territory, agreed with Tuktarov. In Kamchatka, she said, "the PPP mechanism is in its infancy."

“At the same time, we have prepared all the necessary legal and regulatory framework and are considering a number of projects that can be implemented using the PPP mechanism,” she said.

“What prevents attracting investors? In my opinion, there is no real understanding of return on investment today. An investor must understand how he will return his investments, ”Bogdanova said. According to her, the example of Yakutia in implementing PPP mechanisms should be taken into account.

Nevertheless, experts are sure that it is necessary to work with the investor, and the investment climate is created by people.

“Each region is unique. There should be an open field for the exchange of experience in the implementation of public-private partnership mechanisms, because we must develop a unified approach to PPP, including the one regulated by law. And then the projects will be implemented at lower costs, ”Chekin said, stressing that the brightest public-private partnership projects in the Far East are still ahead.

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