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«PPP is going to link expertise and investments»
Denis Kachkin, Managing Partner, Head of Infrastructure and PPP Practice at Kachkin & Partners, comments on the material on infrastructure projects’ financing.
Financing of the infrastructure projects was discussed at the All-Russian Forum and Exhibition «Goszakaz».
The share of public procurement in urban development projects will remain significant, but this instrument cannot be used as the only one, as creation of new high-quality infrastructure requires effective public-private partnerships (PPP). Such theses were stated at the session «City development projects: is there any alternative to government procurement?», which took place on April 23 in St. Petersburg as a part of the XX All-Russian Forum and Exhibition «Goszakaz». During the session, representatives of VEB.RF, commercial banks and major infrastructure companies discussed the prospects for the development of PPP instruments and the challenges that have to be overcome.
One of the factors which constraints development of PPP is the cost of borrowed financing. Almost all participants of the discussion mentioned the high key rate. However, the situation may change in the medium term. «We still understand that the contracts and projects that we are discussing are not a matter of two or three days. Therefore, in any case, we hope for a reduction in the key rate, and therefore a reduction in the money cost for project participants» noted Kirill Grachev, Vice President of Gazprombank.
Along with macroeconomic challenges, there are other ones. According to Denis Kachkin, managing partner of Kachkin & Partners, the PPP market today «lacks clear and unified rules.»
«I would not rely on changing the legislation only, although this definitely needs to proceed, but on adopting a unified state policy in the sphere of public-private partnership. We have helped to form PPP legislation in a number of countries, in all CIS countries, in a number of Eastern European countries. Taking into account the best international practices, this work always began with adoption of a state policy in the PPP field,” Denis Kachkin noted.
Ilya Arzumanov
The article was published on the Expert website on 24.04.2025
Managing Partner
Head of Infrastructure and PPP Practice
Head of Joint Department at HSE University in Saint Petersburg
Attorney
Managing Partner
Head of Infrastructure and PPP Practice
Head of Joint Department at HSE University in Saint Petersburg
Attorney