“The Ministry of Economy proposed to give the regions the right to concessions with investors without competition”
Denis Kachkin, Managing Partner, Head of the Infrastructure and PPP Practice of Kachkin & Partners, comments on the material on new amendments to the legislation proposed by the Ministry of Economic Development.
The Ministry of Economy proposed to give the regions the right to conclude concessions with investors on state property without tender until the end of 2022. According to experts, the implementation of investment projects will accelerate, but there are risks for competition.
The Ministry of Economic Development has prepared bills that give the regions the right to enter into concessions with investors without a tender and change the terms of existing agreements concluded before March 1, 2022, without the consent of the antimonopoly authority, told RBC who has read the documents.
The easements were designed «in order to ensure the Russian economy development in the face of external sanctions pressure.» The need to speed up the amending concession agreement procedure is dictated by building materials prices rising, so the measure will be valid until the end of 2022, Ilya Torosov, First Deputy Minister of Economic Development, explained to the publication.
The rule that allows regions to conclude concession agreements without competition will have an exception — it will not apply to agreements relating to heat supply facilities, centralized water supply and sanitation systems, transport infrastructure facilities and technically related public transport facilities.
The right to amend concession agreement terms without the antimonopoly authority approval is also subject to exceptions — it does not apply to agreements the subject of which are housing and communal services, waste processing facilities and should not lead to the facility purpose change, a decrease in investment and an increase in prices for manufactured goods or services.
The conclusion of concession agreements without a tender will reduce the time for launching projects, says Andrey Mironov, senior lawyer at the National PPP Center (profile ANO). He recalled that today the agreement conclusion, even in the absence of competitors, requires at least 45-60 days, «the possibility of concluding agreements without a tender will save this time.»
Denis Kachkin, Managing Partner, Head of the Infrastructure and PPP Practice at Kachkin & Partners, warned about the risks of the competitive background worsening as the practice of selecting concessionaires without tender is expanded, noting that “such a liberal approach may give rise to distortions in its use.” The “club” of the FAS, which dominates regional and municipal concessions, disciplines the market very much,” he said.
- Legal support for an investor at the stage of preparing a proposal on a PPP project in the field of medicine
- Legal support of the largest PPP project in the field of public transport in Russia — building and operating a tram network with total investment of about RUB 26 billion.
- Legal support for two projects involving the creation of swimming pools in Leningrad Region, implemented on the basis of private concession initiative
- 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
- Legal support in preparing the private investor’s proposal on implementing a concession project in the field of medicine
- Support of conclusion of concession agreements on hotels construction in the frames of private initiative procedure in favour of private investors
- Drafting of PPP legislation in Pskov Region
- Legal support for the participant in a tender for the right to conclude a concession agreement on highway construction
- Support of real property buyout in respect to the St. Petersburg Ring Road construction
- Legal study of prospects for the entry into economic circulation of the Peterhof State Museum-Reserve “Ropshinsky Palace” on public-private partnership terms
- Joint work aimed at ensuring constructive interaction between government agencies, business and public organizations and support for interregional investment projects implemented on the basis of PPP
- Preparation of the Concept for the implementation of an investment project involving the construction and operation of a social-services facility on the basis of PPP
- Formulation of legal arguments for the implementation of a recreational project on the basis of PPP
- Support for a project involving the design, construction, operation and maintenance of road infrastructure in Moscow Region
- Advising the Lipetsk region public authorities on the regional legislation improvement
- Advising the Slantsevsky municipal district’s governing bodies within the stadium construction project with the PPP mechanism application
- Advising the Slantsevsky municipal district’s governing bodies on the improvement of municipal legal and regulatory framework
- Legal advice to KIT Finance holdings on construction of chain of boarding houses with medical treatment for elderly people
- Legal support to the project on creation a large landscape and leisure park located in the Moscow region
- Advising a large food manufacturer in frameworks of acquiring state co-funding to a project to be fulfilled in Volga region (factory erection)
- Anti-corruption expertise of the existing laws and draft laws and subordinate acts of the Republic of Tatarstan (Volga Federal District of the Russian Federation)
- Advising the government of the Leningrad region on the review of regional PPP legislation
- Expert review and development of recommendations on improvement of draft law on Public Private Partnership of Sakha Republic (Yakutia)
- Advising on a PPP project involving comprehensive repair of the city lightning networks fulfilled in one of Ural region major cities
- Comprehensive support for a project involving the creation of a “Regional Medical Rehabilitation Center” in Leningrad Region on the basis of PPP
- Participation in expert review and development of the draft federal law on PPP of the Russian Federation
- Expert review of draft law on Public Private Partnership of Udmurt Republic (Volga Federal District of the Russian Federation)
- Legal support of a PPP project on water utilities
- Advising the City of St. Petersburg authorities on the PPP project implementation