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Not privates, but partners

In the ranking of regions implementing projects on the principles of PPP, only the Sakhalin region managed to make a breakthrough

Not privates, but partners

Where the investor is welcome, and where - not very much, even if they say the opposite in words? Which Russian regions have advanced further than others in the implementation of promising projects based on the principles of public-private partnership (PPP)? Which regional administrations should carry out “work on mistakes” so that the number of their plans finally turns into quality? These and many other questions are answered by the results of an annual study conducted by the Center for the Development of Public-Private Partnerships with the support of the Ministry of Economic Development of the Russian Federation and the Chamber of Commerce and Industry of the Russian Federation.

Based on statistical data and expert surveys, researchers have built a rating of PPP-2014 regions. Regions of the Far East, unfortunately, were not able to rise above the fourth ten in this list: Sakhalin Region - at 37 place (and this is a huge progress for it), Amur Region - at 48, Magadanskaya - at 55, Kamchatka Krai - at 63, Khabarovsk - on 73, Sakha Republic (Yakutia) - on 74, Jewish Autonomous Region - on 79, and Chukotka Autonomous Region - on the most recent, 83 position among all subjects of the Russian Federation.

The development of public-private partnership in Russia was assessed on a number of indicators, based on which the assessment of the potential of a given region in the sphere of PPPs was derived from the general formula. When compiling the rating, the researchers relied on Rosstat data of the Russian Federation as of 1 February 2014, the information base of projects implemented on the principles of PPP prepared by the Ministry of Economic Development, the rating of the investment attractiveness of the regions of the Russian Federation compiled by RA Expert, as well as the series conducted with the support of the RF CCI Expert interviews with representatives of regional administrations responsible for the sphere of PPP.

The region's experience in implementing PPP projects was taken into account (current status, amount of funds invested by a private investor, terms of implementation, sectoral differentiation of projects in the region, expert project evaluations), as well as the general level of institutional environment development in PPPs in the region, experience in implementing similar projects And the investment attractiveness of the subject of the Federation for infrastructure investors. The final result was expressed as a percentage.

The leaders of the rating were St. Petersburg and Tatarstan, which had the highest investment attractiveness, as well as the Novosibirsk, Sverdlovsk, Nizhny Novgorod, Voronezh, Leningrad, Samara and Yaroslavl regions, Moscow and the Krasnodar Territory, as well as the Khanty -Mansiysky Autonomous District. The indicators of these regions are from 51% to 73,9%.

Sakhalin Oblast scored 35,7%, Amurskaya - 31,4%, Magadan, - 27,6%. They belong to a group of regions with medium potential. They are characterized by a low level of development of the regulatory and legal framework affecting the implementation of PPP projects, and low investment attractiveness. For all that, the regions belonging to this group have, according to the authors of the study, ample opportunities for growth with the competent positioning of perspective infrastructure projects for a private investor.

All other subjects of the Federation belonging to the Far Eastern Federal District are among the regions with very low potential. And such in Russia - a quarter of the total. Although there is a positive trend here too - for example, the Kamchatka Krai has started implementing PPP pilot projects, and if they are successfully implemented, the region will significantly increase its position in the rating.

The study analyzed the 131 project on the basis of PPP, implemented in 60 regions of the Russian Federation. Projects rated for more than 3 years related to public infrastructure and based on the principle of risk sharing between private and public partners were evaluated. The main organizational and legal forms of such projects were concession agreements and PPP agreements within the framework of regional legislation, as well as projects close in their principles to PPP (leases with investment obligations, life cycle contracts, public procurement with deferred payment, if there are risks between the parties and more than 3 years), etc.

In Russia, a little more than half (57%) of such projects is under implementation, a quarter (24%) is being developed. Only 9% is implemented. 8% are at the stage of competitive procedures and 2% are currently suspended. The forms of PPP projects are concession (53%), regional law (35%) and forms close to PPP (12%). The average timeframe for implementation is 12,7 years (the longest in the communal sphere, relatively tight - in the energy and social sectors). The total declared value of PPP projects is more than 1 trillion rubles, while the volume of investments from private partners is estimated at 913 billion rubles.

As for the Far East, the projects under consideration on the basis of PPP are not very much here: 2 in the transport sector and 2 in the energy sector. Neither in the communal or social spheres, which are vital for the development of this federal district, there are no similar projects, according to the research. The amount of attracted private investment is 11 051 300 thousand rubles - almost three times less than in the Central Federal District, four times less than in the UFO, 12 times than in the NWFD and almost 20 times than in the Siberian Federal District.

Nevertheless, one of the regions of the Far Eastern Federal District - the Sakhalin region - the authors of the study singled out as a "point of growth": in a year it was able to rise in the rating by as much as 45 steps. This is the best result among all regions that have been able to achieve changes for the better.

The reasons that allowed to make such a breakthrough, analysts, first of all, include the creation and the beginning of active work of the regional budgetary institution “Sakhalin Agency for Development Projects”. A program was adopted for the development of PPP in Sakhalin Oblast, and a project was launched using PPP mechanisms - “Construction and reconstruction of energy supply systems on Iturup Island” on the basis of a concession agreement.

The authors of the study draw attention to the fact that the legislative base of the regions sometimes does not at all contribute to the development of PPP projects, and sometimes directly contradicts these principles. As of November 2013, the relevant laws were adopted only in 65 constituent entities of the Russian Federation, and in 4 regions were still under consideration in the legislative bodies. Among the regions of the Far East, laws on public-private partnerships have been adopted in the Kamchatka Territory, the Amur Region, and the Jewish Autonomous Region. In the Republic of Sakha (Yakutia), the law has been adopted, so far, only in the first reading. This imperfection of the legislative framework is certainly a serious obstacle to the implementation of PPP projects.

According to Igor Koval, director of the department for investment policy and development of PPP of the RF Ministry of Economic Development, the fate of many such projects now depends on the regional authorities and, consequently, the regions' ability to make a breakthrough or stay in place. “PPP conditions are created equal for all,” explained Mr. Koval. “The leaders of each constituent entity of the Russian Federation (their political will, the ability to assemble a professional team of managers, to create a regulatory framework for PPP projects) depends on how effectively they will be used.”

For his part, the high-ranking official emphasized, the Ministry of Economic Development is ready to synthesize and replicate the positive practice of the leading regions in the application of PPP mechanisms.

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