Rustam Minnikhanov: "Tatarstan should attract investors to implement projects on public-private partnership"

Issues of partnership development between government and business were discussed today at the regular meeting of the Investment Council under the chairmanship of Tatarstan President Rustam Minnikhanov.
"The republic does a lot for attracting private investment in public projects, - noted Rustam Minnikhanov, opening the meeting. - Examples of successful cooperation between public authorities and businesses are such projects as special economic zone "Alabuga", Innopolis, TANECO and “Ammonium”.

Noting that with the absence of federal legislation subjects of the Russian Federation adopted their regional laws on public-private partnership (PPP), the President noted that the PPP law in the Republic of Tatarstan was adopted 2.5 years ago - in August 1, 2011. Significant role in the implementation of the PPP law in Tatarstan plays concession - The President underscored that it is one of the most effective forms of interaction between government and business, which can be implemented in social projects. A good example – is the "ABA-Kazan" project, managing Republican Center for Family Planning and Reproduction.

In the discussion of PPP development issues head of the region noted the lack of competent staff and proposed to develop an educational program that would give a complete understanding of the PPP and its mechanisms, procedures for preparing and implementing projects on a PPP.
Tatarstan Investment Development Agency Chief Executive Linar Yakupov noted that the most effective solution to such problem as lack of state capacity to finance infrastructure development using budget funds is to attract private investment in the construction, renovation and facilities management. Linar Yakupov said that, public investment is replaced by private, and this is the essence of public-private partnership.
In the agency, which is a public body of the Republic of Tatarstan, continued Linar Yakupov, private investors recently are increasingly offer to take part in the management of objects on the basis of public-private partnership agreements, including concession agreements. "The greatest interest of investors attracted to industries such as health care, preschool education, housing and utilities, construction of landfills, engineering infrastructure, - underscored Tatarstan Investment Development Agency Chief Executive. Linar Yakupov said that today the Agency together with a number of ministries and departments is working with a number of private investors who are interested in the implementation of projects under PPP.
In order to evaluate the use of PPPs in the Republic of Tatarstan Agency in the end of 2013 requested from the municipalities information on objects, which creation or reconstruction is not provided in the required amount of budget funds and where can be used PPP. In response to the request was given the information about 360 communal, social, transport and industrial infrastructure. Their creation or reconstruction requires more than 74 billion rubles. Local governments are willing to contribute to these projects only 1.8 billion rubles. The Agency works to attract private investors for these projects".
Commenting on the existing problems Linar Yakupov said that there has not yet created the necessary legal conditions for investment in long-term infrastructure projects with private investment. Tatarstan’s law on public-private partnership is largely establishes the possibility of a mutually beneficial cooperation between the state and private investors, and does not regulate the specific form of the interaction. Tatarstan Investment Development Agency in preparation for the Investment Council, organized the seminar "Experience of implementation of public-private partnership" for deputy heads of ministries, departments and executive committees responsible for activities in the investment sphere.

Seminar, held on February 25, was supported by High School of Management of St. Petersburg State University and «RISE Capital» Fund.  The seminar was attended by the Professor of Public Administration Department in High School of Management, St. Petersburg State University Svetlana Maslova. She presented the experience of St. Petersburg, a recognized leader in the development of public-private partnership in the Russian Federation.

In the begin of February, the Agency held a meeting on the development of public-private partnership (PPP) in the region with the participation of deputies of the State Duma of Russia, the State Council of the Republic of Tatarstan, as well as heads of ministries and agencies in the region.
Then about the current practice in the republic, interests in health care facilities, as well as projects, interest in the development of which have expressed potential investors, presented the Minister of Land and Property Relations of the Republic of Tatarstan Azat Hamaev. About the successful practices of PPP projects based on a concession agreement in the field of health, in particular the "ABA-Kazan", told "ABA-Kazan" CEO, Chief Doctor of Family Planning Center Firaya Sabirova. She told about the Concession Agreement and the stages of its implementation.
Chairman of the Board of Directors of JSC "Avtostrada" Foat Komarov presented the experience in the construction of roads with the use of PPPs, in particular, road-Shali Bavli. Foat  Komarov told about the problems that exist during the implementation of the project. Rustam Minnikhanov underscored that this project is very important to be completed.

On the experience of implementation of public-private partnership told the Vnesheconombank Director of complex development of the "Federal Center for Project Finance" (FCPF) Olesya Gladkova. With her head of state she discussed the organization of a training seminar on PPP.
The final speaker was the "VIS" Board of Directors Deputy Chairman Rashid Aytuganov. The company has a big experience in the implementation of PPP projects and a lot of interest in the work on the territory of the Republic of Tatarstan. In particular, GSK "VIS" considers the possibility of their participation in Kazan Smart City infrastructure development. Rashid Aytuganov in his speech underscored that GSK "VIS" has chosen the direction of public-private partnerships as a priority in its business strategy. Today, the company has the status of one of the leading players in the Russian market in the field of infrastructure construction.

Tatarstan Investment Development Agency Press Service