Financing private-public partnership projects

МО «SOLEV» is one of pioneers of application in Russia (and also in Kazakhstan and Ukraine) the advanced schemes of design financing of concession and quasiconcession transactions for most large-scale projects in electric power industry, a transport infrastructure, housing-and-municipal sphere, projects of development of cities and separate city territories etc. when as the partner of group of private investors and creditors the state (federal and-or regional and-or local authorities) acts. Such transactions are called as the private-state partnership (ЧГП or (English) PPP – Public Private Partnership) also cause now exclusive interest of experts in design financing all over the world: on the one hand, participation of the state as the sponsor of project ЧГП essentially reduces for a private sector risks of default of the project and a non-return of means, and on the other hand, flexibility and manoeuvrability of the private capital allows to improve considerably controllability of the project and, thereby, to raise efficiency of use of budgetary funds.

From all known schemes of the private-state partnership in МО «  SOLEV» the scheme of transactions of type of Century of the Island of Island Т (Built (has constructed) - Own (I own) - Operate (I operate) - Transfer (has transferred)), and also its versions is most worked: Century of Island Т (Built - Operate - Transfer), B.L.T. (Built - Lease - Transfer) and some other.

The scheme of Century of the Island of Island Т is in detail disassembled in the special literature and is based on firm obligations of the budgetary organization (federal, regional, local budgets) and-or the large private organization to redeem after caused in advance investment period object, for example, thermal power station which is constructed by the private investor at own expense, belongs and copes this investor to the full repayment.

Transactions of Century of the Island of Island Т, and also other transactions of almost concession plan began to be perceived as a reality only after acceptance of the new legislation «About Concessions» in 2005. They are extremely difficult in study since demand coordination of many participants with sometimes разнонаправленными vectors of interests and is never real still up to the end are executed in Russia and territory of the CIS in the complete antithesis to it in the USA, Europe and developing countries of Asia, Africa, Latin America where the quantity similar (including large – in hundred millions dollars) transactions is estimated in tens a year.

Offers on participation in transactions of the private-state partnership in different areas arrive in МО « SOLEV » monthly that speaks about high potential of this direction of our activity.