Stroyproekt takes part in Russian Public-Private Partnership Week

Stroyproekt takes part in Russian Public-Private Partnership Week 15.04.2016

The third Infrastructure Congress “Russian PPP Week” was held in Moscow from 29 March to 1 April 2016 and gathered over 1600 delegates from 76 regions of Russia.
The Congress was organized by the PPP Development Centre supported by the Chamber of Commerce and Industry of the Russian Federation, the Agency for Strategic Initiatives and All-Russian Public Organization “Delovaya Rossiya”. A welcoming address to the Congress participants was made by Dmitry Medvedev, the Prime Minister, and Sergey Naryshkin, the Chairman of the State Duma. Stroyproekt was represented by the General Director Aleksei Zhurbin, the Director of Consulting and International Projects Division Alexander Boutovski and the Deputy Head of Construction Economics Division Olga Kuleshova.
During the plenary session “Investment into infrastructure as an impulse for the development of territories”, the leading experts discussed how to ensure the PPP project funding and to improve project structuring and management. The high officials of Rosavtodor and State Company Avtodor took part in the plenary discussion focused on efficient distribution of risks between public and private partners while implementing transport infrastructure projects. Then, stress test of the projects prequalified for financing from the Federal Road Fund took place. The following projects were stress-tested: Construction of the Izhevsk Bypass (the Udmurt Republic), Bridge over the Chusovaya River (Perm Krai) and Construction of the Fourth Ob River Bridge (Novosibirsk Region). The participants assessed the Novosibirsk Region Project as the most attractive for investment.

Alex Boutovski answered the questions on PPP projects asked by a reporter of the Roads and Construction Innovations magazine:

-What do you think of the potential of reginal infrastructural projects based on PPP?  Is it profitable for investors to invest into such projects?

- In my opinion, such regional projects have a great potential.  There are already a dozen of projects that have been shaped to be implemented with PPP mechanisms. Moreover, as far as I know several Russian regions have identified a number of projects that may be potentially implemented as PPP projects and are now making necessary arrangements for their realization.

- When speaking about PPP projects, one usually means capital intensive construction of bridges or city bypasses. However, the infrastructure involves road-side services, weight control posts, transport systems and other projects that may be implemented using PPP mechanisms. Do you consider participating in such projects and is there a need for them in regions?

- Yes, of course. I would say all these aspects are now integral part of any large road project and our company has practical experience of carrying out researches and designing these components of road infrastructure.
- What PPP mechanisms can be used for regional projects?

- At present the Russian Government is developing a new mechanism for state support of regional transport projects. It is supposed that a source of funding will be the federal budget resources raised in the Federal Road Fund from the Platon system. The Platon is a system collecting tolls from heavy trucks with a weight of over 12 tons intended to compensate damages to public roads due to their traffic. It is suggested that the money from the Federal Road Fund will be allocated for funding certain road projects using the mechanism of interbudgetary transfers.  The new financing mechanism will be used for funding the projects which price is over 1.5 billion RUR and which have to be structured as required by the Law on concession agreements.  
- PPP projects require certain qualification of experts. What do you think about capacities of regional experts?

- I am glad to say that their capacities have been constantly improving. The increasing number of PPP projects that are being implemented makes the specialists learn on the job.  Besides, various training courses, including remote training, arranged by the PPP Centre and such events as Russian PPP Week and transport forums focusing on PPP aspects are really important for enhancing the quality of expertise.  However, there is always space for improvement.
In this context, it is worth mentioning that Stroyproekt is a leader in toll road designing – we have designed the Western High Speed Diameter in St. Petersburg, the M-4 Don and the M-1 Belarus highways. Today Stroyproekt is developing a PPP project for construction of the 4th bridge in Novosibirsk and Khabarovsk bypass road.

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