The
current state and dynamics of development of the Russian public-private
partnership (PPP) market are analyzed in the first issue of the quarterly
information and analytical digest ‘Public-Private Partnership in Russia: 2023
results and key trends’. It was prepared by the Association of Infrastructure
Investors and Lenders (AIIC) jointly with the Russian Ministry of Economic
Development and the company Trust Technologies (TeDo) within the framework of
expert and analytical cooperation with the Roscongress Foundation. The material
is timed to coincide with the St. Petersburg International Economic Forum 2024.

An
important aspect of the implementation of projects on PPP principles is the
fact that in conditions of limited budgetary funds with the involvement of
private capital, facilities are created earlier and more quickly begin to give
budgetary and socio-economic returns. Such projects, for example, increase the
gross regional product through the use of local products and local contractors,
as well as by increasing the wages and purchasing power of the employees
involved. These effects occur already during the investment phase of the
project and multiply during the operational phase of the project.

The
digest contains detailed infographic information on the main PPP development
trends and rating of regions by PPP partnership development level. Separate
parts of the document are devoted to the PPP support measures navigator, trends
of normative development and law enforcement in this area.

At the
end of 2023 in Russia there are 3,427 agreements on the implementation of PPP
projects for RUB 4.8 trillion of total investment, including RUB 3.3 trillion
(69%) extrabudgetary funds, the report says. On average, one project accounts
for RUB 1.4 billion of total investment. The majority of PPP projects are
implemented in the form of concession agreements.

“Public-private
partnership in the current macroeconomic situation remains the key mechanism of
interaction between the state and business. The volume of contracted
investments in PPP projects in 2023 reached a record high and came close to RUB
1 trillion, which confirms the demand for this mechanism among investors when
implementing infrastructure projects. Such results were facilitated, among
other things, by the adoption of PPP system law No. 296-FZ on 10 July 2023. The
Ministry of Economic Development of Russia, as a regulator in the field of
public-private partnership, worked with the involvement of business,
authorities and experts do develop this law. Currently, we are facing new and
ambitious tasks, including the development of PPP mechanisms in space and
industry, the implementation of which will bring public-private partnership to
a new level of relations between business and government,” shared Ilya Torosov,
First Deputy Minister of Economic Development of the Russian Federation.

The
largest number of PPP projects is implemented in the housing and utilities
sector and energy supply – 2,763 agreements worth RUB 1.2 trillion. About 14%
of projects – 489 agreements worth RUB 0.9 trillion – are implemented in the
social sector. These are education and science, healthcare, sports, culture,
leisure and tourism. The largest volume of investments is contracted in the
transport sector – 117 agreements worth RUB 2.4 trillion.