MONITORING CHANGES IN LEGISLATION IN THE SPHERE OF PUBLIC-PRIVATE (MUNICIPAL-PRIVATE) PARTNERSHIP
New in the legislation regulating the contract system in the field of procurement of goods, works, services to meet state and municipal needs (in terms of offset contracts)
- The 44-FZ on the contract system now includes provisions on joint purchases by customers of one region to conclude offset contracts. Formally, the amendments come into force on January 1, 2026, but are already in effect (since January 1, 2025) due to transitional provisions.
On December 26, 2024, amendments were made to the legislation regulating the contract system in the field of procurement of goods, works, services to meet state and municipal needs (in terms of offset contracts).
Special provisions were introduced on a joint tender for the conclusion of offset contracts by several state/municipal customers of one region.
In general, the rules are no different from the general ones - a joint tender is held on the basis of an agreement on holding a joint tender, each customer, based on the results of the tender, concludes a separate contract and accepts the goods/services themselves.
There is only one main feature - in the agreement on holding a joint competition and each individual offset contract, one customer is indicated who will accept the results of the investor fulfilling his investment obligations (for construction, modernization of production, construction, reconstruction of the facility using which services are provided).
All other rules (in particular, the minimum investment volume (RUB 100 million) for offset contracts remain the same.
Basis: Federal Law of 26.12.2024 No. 484-FZ "On Amendments to the Federal Law "On the Contract System in the Sphere of Procurement of Goods, Works, Services to Meet State and Municipal Needs" and Articles 5 and 8 of the Federal Law "On Amendments to Certain Legislative Acts of the Russian Federation".
Option for the digest: a joint tender is held on the basis of an agreement to hold a joint tender, each customer, based on the results of the tender, concludes a separate contract and accepts the goods/services themselves (Federal Law of 26.12.2024 No. 484-FZ "On Amendments to the Federal Law "On the Contract System in the Sphere of Procurement of Goods, Works, Services to Meet State and Municipal Needs" and Articles 5 and 8 of the Federal Law "On Amendments to Certain Legislative Acts of the Russian Federation" Federation".
New in the legislation regulating budgetary relations that apply to concession agreements and public-private (municipal-private) partnership agreements
- Budget restrictions for new PPP projects have been introduced in the Budget Code of the Russian Federation.
On July 13, 2024, amendments were made to the current legislation regulating budgetary relations that apply to concession agreements and public-private (municipal-private) partnership agreements concluded after January 1, 2025.
The amendments are related to limiting the possibility of financial participation of subsidized regions and municipalities in agreements.
The total amount of budget expenditure of the subsidized subject of the Russian Federation (municipality) allocated for the execution of:
obligations arising from the execution of concession agreements (in the amount of the concession grantor's fee, capital grant),
obligations to legal entities that are parties to public-private partnership agreements,
obligations to pay lease payments under financial lease (leasing) agreements must not exceed 10% of the approved total annual budget revenue of the subject of the Russian Federation.
The financial obligations of the subsidized subject of the Russian Federation and the municipality may be included in the agreement if the amount of debt of such subject of the Russian Federation (municipality) does not exceed 50% of the approved annual revenue.
Basis: Federal Law of July 13, 2024 No. 177-FZ "On Amendments to the Budget Code of the Russian Federation and Certain Legislative Acts of the Russian Federation".
Digest option:
The total amount of budget expenditures of a subsidized constituent entity of the Russian Federation (municipality) allocated for the fulfillment of obligations shall not exceed 10% of the approved total annual budget revenues of the constituent entity of the Russian Federation. (Federal Law of July 13, 2024 No. 177-FZ "On Amendments to the Budget Code of the Russian Federation and Certain Legislative Acts of the Russian Federation").
- Changes have occurred in the legal regulation of the examination of PPP/MPP projects
On January 23, 2025, the Ministry of Economic Development of the Russian Federation developed a draft amendment to the Rules for the authorized body to assess the effectiveness of a public-private partnership project, a municipal-private partnership project and determine their comparative advantage, approved by RF Government Resolution No. 1514 of December 30, 2015. The expected date of entry into force of the amendments is June 1, 2025.
The authorized body will involve VEB.RF as an expert organization when providing an opinion on the effectiveness of the PPP project and its comparative advantage. VEB.RF will provide expert opinions only with respect to projects in which:
the public partner is a constituent entity of the Russian Federation or a municipality, and the total amount of financing for the construction and (or) reconstruction of the object of the agreement exceeds 3 billion rubles.
VEB.RF will assess the authorized body's compliance with the requirements established by the Federal Law and acts of the Government of the Russian Federation, as well as the methodology for assessing the effectiveness of the PPP (MPP) project.
When approving the conclusion, the authorized body will have the right to take into account the results of VEB.RF's examination.
Basis: Draft Resolution of the Government of the Russian Federation "On Amendments to the Rules for the Authorized Body to Assess the Effectiveness of a Public-Private Partnership Project, a Municipal-Private Partnership Project and Determine Their Comparative Advantage" (as of 23.01.2025, prepared by the Ministry of Economic Development of Russia).
Digest option: If the amount of financing for the construction and (or) reconstruction of a PPP/MPP agreement object, in which a region or municipality is a public partner, exceeds RUB 3 billion, the draft positive conclusion of the authorized body will have to undergo an examination at VEB.RF (Draft Resolution of the Government of the Russian Federation "On Amendments to the Rules for the Authorized Body to Assess the Effectiveness of a Public-Private Partnership Project, a Municipal-Private Partnership Project, and Determine Their Comparative Advantages" (as of January 23, 2025, prepared by the Ministry of Economic Development of Russia).
- Changes have been made to the objects of PPP/MPP agreements.
- Changes have been made to the objects of PPP/MPP agreements.
On August 8, 2024, changes were made to the objects of PPP/MPP agreements (in the final, 3rd reading).
The possibility of concluding PPP agreements for the reconstruction of existing industrial facilities in private ownership and the construction of industrial facilities on land plots in private ownership has been established.
The object of such agreements is property complexes intended for the production of industrial products and (or) the implementation of other activities in the industrial sector. This object is already on the list of objects of 224-FZ.
There are 2 options for implementing such projects: reconstruction of the object of the agreement in private ownership. In this case, the object must be free from the rights of third parties or construction of the object "from scratch" on a land plot owned by the private partner at the time of concluding the PPP agreement. In this case, the land plot must be free from the rights of third parties.
Agreements will be concluded only at the federal level. The implementation of the project can be initiated by a private investor who owns an industrial facility and (or) a land plot on which the construction of the facility is planned.
The law establishes a special procedure for concluding such agreements and requirements for their content.
For example, mandatory criteria for such a project are established. Among them are the project's compliance with the requirements for technological sovereignty projects or projects for structural adaptation of the Russian economy; financing - more than 10 billion rubles; the investor's own (non-credit) funds - at least 15% (previously, this threshold was expressed in natural numbers - at least 1.5 billion rubles); the investor must invest more of his own and borrowed funds in the project than the public party.
Basis: Federal Law of August 8, 2024 No. 302-FZ
"On Amendments to the Federal Law "On Public-Private Partnership, Municipal-Private Partnership in the Russian Federation and Amendments to Certain Legislative Acts of the Russian Federation".
Option for the digest: within the framework of PPP projects, it will be possible to reconstruct private industrial facilities and create industrial facilities on private land plots. The goal is to produce products that ensure Russia's technological independence from foreign companies. One of the conditions is that the volume of co-financing of the project by the private partner must be at least 15% (in the case of reconstruction, the corresponding amount must not be less than 10 billion rubles). PPP agreements will be concluded within the framework of the "private initiative" mechanism. This will allow a private investor to submit his proposal and conclude an agreement in the absence of proposals from other interested parties. (Federal Law of August 8, 2024 No. 302-FZ "On Amendments to the Federal Law "On Public-Private partnership, municipal-private partnership in the Russian Federation and amendments to certain legislative acts of the Russian Federation").
- Federal Law No. 115-FZ of July 21, 2005 "On Concession Agreements" was supplemented with a new Chapter 4.2.
On November 30, 2024, amendments were made to Federal Law No. 115-FZ of July 21, 2005 "On Concession Agreements". The amendments entered into force on December 31, 2024.
Federal Law No. 115-FZ was supplemented with a new Chapter 4.2. establishing the specifics of concluding and executing concession agreements in relation to cultural heritage sites in an unsatisfactory condition.
It is envisaged that memorial apartments, mausoleums, works of monumental art, as well as religious property cannot be objects of a concession agreement.
The law also prohibits changing the intended purpose of an educational, cultural, sports facility, a facility used for organizing recreation and tourism for citizens, or another socio-cultural facility that is part of a cultural heritage site in an unsatisfactory condition and is the subject of a concession agreement.
If all the conditions stipulated by law are met, the concessionaire will receive a preferential right to purchase the object of the concession agreement.
Basis: Federal Law of November 30, 2024 N 444-FZ
"On Amendments to Certain Legislative Acts of the Russian Federation".
Option for the digest: the possibility of concluding concession agreements in relation to cultural heritage sites in an unsatisfactory condition is established. The criteria and procedure for making decisions on classifying cultural heritage sites as the above are defined. It is prohibited to conclude public-private or municipal-private partnership agreements in relation to objects included in the register of cultural heritage sites (Federal Law of November 30, 2024 No. 444-FZ "On Amendments to Certain Legislative Acts of the Russian Federation").
The law establishes a special procedure for concluding such agreements and requirements for their content.
For example, mandatory criteria for such a project are established. Among them are the project's compliance with the requirements for technological sovereignty projects or projects for structural adaptation of the Russian economy; financing - more than 10 billion rubles; the investor's own (non-credit) funds - no less than 15% (previously, this threshold was expressed in natural numbers - no less than 1.5 billion rubles); the investor must invest more of his own and borrowed funds in the project than the public side.
Basis: Federal Law of August 8, 2024 No. 302-FZ
"On Amendments to the Federal Law "On Public-Private Partnership, Municipal-Private Partnership in the Russian Federation and Amendments to Certain Legislative Acts of the Russian Federation".
Option for the digest: within the framework of PPP projects, it will be possible to reconstruct private industrial facilities and create industrial facilities on private land plots. The goal is to produce products that ensure Russia's technological independence from foreign companies. One of the conditions is that the volume of co-financing of the project by the private partner must be at least 15% (in the case of reconstruction, the corresponding amount must not be less than 10 billion rubles). PPP agreements will be concluded within the framework of the "private initiative" mechanism. This will allow a private investor to submit his proposal and conclude an agreement in the absence of proposals from other interested parties. (Federal Law of August 8, 2024 No. 302-FZ "On Amendments to the Federal Law "On Public-Private partnership, municipal-private partnership in the Russian Federation and amendments to certain legislative acts of the Russian Federation").