In Russia, the public-private partnership mechanism is becoming a fundamental tool to develop regional and municipal infrastructure, attract investment, and improve the quality of public services. On the backdrop of the general decline in state investment in infrastructure and the reduced access to resources due to the imposition of sanctions against the leading Russian financial institutions, the PPP is one of the tools for solving the current social problems of the state.
In our country, the potential of public-private partnerships is yet to be realised in a number of capital-intensive industries, in the regional and local economies, in the small and medium-sized business sector. International experience has led to the creation of a variety of conceptual approaches, forms, methods and specific PPP mechanisms, which could well be used to solve a number of important problems of modern economic policy. Various forms of partnerships can provide effective solutions to the reformation of natural monopolies, can help find solutions to the problem of improving the industrial and amenity infrastructure, and can provide a major breakthrough in utilities and road and transport construction.
The main condition for the implementation of major infrastructure projects for business is clear and predictable regulatory policy from the state. Federal Law No. 224 on public-private partnerships, which entered into force in February 2016, aims to simplify and standardise the procedure for the preparation of PPP projects, eliminate a number of inefficient and costly procedures, and identify the main forms of cooperation between the private and public sector. These measures indicate that the government regards PPPs as a promising form of cooperation with private investors and is working to establish growth points in the Russian PPP market.
According to the Ministry of Economic Development and PPP Development Centre, in Russia today more than 1,300 PPP projects are at various stages of implementation, with a total private investment of RUB 640.3 billion.