Private-Public Partnerships (PPP)

PUBLICATIONS

November 2018

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Construction Weekly, 29.02.2016
“PPP Law Required Correction”
Construction Weekly, 31.08.2015
“Investment diagnosis doubtful”
Construction Weekly, 31.08.2015
“Healthy partnership”
Vedomosti – St.Petersburg, 22.12.2014
"In contact with authority for next to nothing"
Delovoy Peterburg, 08.12.2014
"Recipe for an investor"
Kommersant – St. Petersburg, supplement “Legal forum”, 03.12.2014
"Partner scheme"
Vademecum N 34 (59), 27.10.2014
"Guarantee juice"  
Kommersant – Saint-Petersburg, 06.10.2014
"Personal needle"  
Russian newspaper, 30.09.2014
"Between two fires"  
Kommersant, supplement "Review. Sochi Forum 2014", 18.09.2014
"At a gallop to PPP"  

Страницы

02.11.2018
The international ranking IFLR1000 recommends Kachkin and Partners for accompanying mergers and acquisitions for the first time and recognizes company’s expertise in the field of project finance and PPP again
07.09.2018
Denis Kachkin held a session on pitfalls of PPP projects in the emerging markets within Europe-Caucasus-Asia Forum
25.05.2018
Kachkin & Partners has acted as a legal adviser to the winner of the competitive tender for the project of a tram network creation in St. Petersburg
25.05.2018
Kachkin & Partners has supported concession agreement preparation and conclusion for the first PPP format hotel creation in St. Petersburg
12.12.2017
Denis Kachkin has been appointed the Vice Chairman of the Project Finance Subcommittee of the International Bar Association (IBA) Banking Law Committee
21.11.2017
PPP perspectives in relation to street railways’ system were discussed in Russia for the first time
16.10.2017
The international ranking IFLR1000 has traditionally recommended Kachkin and Partners for work in the field of project finance and for the first time has marked the firm among the leading law companies in Russia in the sphere of PPP
06.09.2017
The direct agreement aimed at achieving financial closure of the first PPP project in the transport sector of the Far East has been signed with the support of Kachkin & Partners, the total cost of the project is more than 43 billion rubles
24.07.2017
Social infrastructure in Leningrad region begins to develop actively according to the PPP model
17.05.2017
Denis Kachkin will become a co-chair of the session on reaching a financial close in PPP projects at the 34th IBA International Financial Law Conference

Страницы

Legal support for the participant in a tender for the right to conclude a concession agreement on highway construction
Legal support to the winner of the competitive tender for the project of a tram network creation in St. Petersburg
Legal support for an investor at the stage of preparing a proposal on a PPP project in the field of medicine
Drafting of PPP legislation in Pskov Region
Legal support for a project involving reconstruction and operation of the Leningrad Regional Medical Rehabilitation Center in Leningrad Region on the basis of PPP
Support of conclusion of concession agreements on hotels construction in the frames of private initiative procedure in favour of private investors
Legal support in preparing the private investor’s proposal on implementing a concession project in the field of medicine
Development of a concept for the creation of an Innovational medical cluster in the Caucasian Mineral Waters Region spanning a total area of several tens of thousands sq km and an action plan for its implementation
Participation in expert review and development of the draft federal law on PPP of the Russian Federation
Comprehensive support for a project involving the creation of a “Regional Medical Rehabilitation Center” in Leningrad Region on the basis of PPP

Страницы

Construction Weekly, 31.08.2015

Link

“Investment diagnosis doubtful”

Denis Kachkin, the Managing Partner at Kachkin & Partners, considers the first amendments to the new federal law on public-private partnership to be possibly made this year.

In the PPP scheme, businesses prefer projects with a clear financial model, predictable and controllable risks and acceptable level of profitability, experts say. But its regulatory base has too many loopholes for investors to count on stable profitability.

Denis Kachkin, managing partner of Kachkin & Partners, is skeptical about the project of the public-private hospital. "We didn't evaluate investment prospects of this project. It is likely to be interesting for many companies, but we think that serious complications can arise at the stage of legal risks assessment," believes the expert. According to him, the project is supposed to be implemented based on a regional PPP model, which in its current form is in its final days. The new federal law on PPP will come into effect from the beginning of 2016 – it will change the rules completely and create higher risks for all projects, structured according to the existing regional legislation. The concession law is amended twice or thrice annually. "I am sure that the same destiny awaits the new law No. 224-FZ on PPP. Maybe we will see the first amendments even this year, before it goes into effect," predicts Kachkin.

Alexandra Koroleva, head of the civil projects department at GC Hosser, named lack of life cycle contracts in the health care sector as one of the restrictions, which decrease the efficiency of PPP projects in the industry. This means deficit of long-term cost planning for services and incapability to enable continuous diagnostic and treatment process. Lack of approved methods for calculation of operating costs also matters, as it complicates the process of justification for compensations, sufficient for high-quality maintenance. There are also gaps in the compulsory health insurance rate structure: investment costs (capital expenditures and fund raising costs) are not present there, as well as equipment modernization costs above 100,000 rubles.  Finally, lack of approved standards and operation methods influences the implementation perspective of this scheme. "Professional operation can extend the useful life of equipment by 20-25% and reduce downtime of medical equipment because of breakdown to 1-3% of operational time per year," calculated the expert.

By the way

After the meeting, Prime Minister formulated a number of tasks aimed at entrenchment of the PPP model in the social sphere. Thus, Ministries of Economic Development, Healthcare and Finance were requested to elaborate issues of state-owned health care facilities taking part in concession agreements on the grantor's side. Such changes will make the preparation of objects for concession a lot easier. Another decision was changing the list of life cycle contracts. After amendment to the cabinet of ministers' resolution dated November 28, 2013 No. 1087, it will finally include health care facilities. Amendments will also be implemented into the Land Code: it will allow to provide land for projects, supported by transactions of investment attraction to federal infrastructure objects.

Maxim Shumov