VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
The development of public-private partnerships (PPP's) is one of the highlights of Russia's strategy for long-term social and economic development through 2020, which calls for lowering entrepreneurial and investment risks, especially in the areas of research and development, the proliferation of new technologies, and the development of transportation, energy and utilities infrastructures.
Partnerships between the government and one or more private companies help to overcome limited possibilities of state and municipal bodies, and allow private-sector management techniques and experience to improve the quality and efficiency of a construction project and the services rendered.
Russia's Federal Investment Fund, established in late 2005, is an important and effective instrument for PPP.
A major goal for the money provided by the Fund is to support specific investment projects that considered priorities for the country or one of its regions, as well as to construct the national or regional infrastructure necessary for these projects to be successful.
Projects eligible for this kind of government support are selected by means of an transparent procedure and are examined by the Regional Development Ministry's Investment Commission and then by a government commission. Finally, project certificates are approved by Government executive orders.
There are two kinds of projects that can be supported through the Investment Fund: projects of national importance and regional investment projects.
The Russian Government has approved 21 projects of national importance and allocated about 400 billion roubles from the Investment Fund for their support. The projects are expected to have a significant multiplier effect, creating over 61,000 new jobs in 32 Russian regions and ensuring an influx of 257.7 billion roubles in additional payments to the federal and local budgets over a forecast period of ten years. They are also expected to attract 2.2 roubles in private investment for each rouble provided by the Fund.
The PPP idea has become popular in the regions, as they have submitted over 100 applications. The constituent regions and cities of Russia are also ready to participate in the project by providing co-financing.
Unlike large-scale projects of national importance, regional investment ones have shorter lead times and are expected to turn a profit sooner. Therefore, they are more effective for alleviating the consequences of the global economic turndown in the Russian regions.
These projects will stimulate internal demand for domestic products, provide employment, and increase the revenues of the federal and local budgets.
