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PPP and Infrastructure practice associates Irina Dolgikh and Mikhail Kornev delivered a presentation, Private initiative in concessions and PPP as an alternative method of selecting a private partner/concessionaire, on November 27, as part of the training program on the use of PPP projects for the development of regional and municipal infrastructure.

Mr. Kornev talked about the benefits of private concession initiatives and private initiatives under the 224-FZ law compared with competitive procedures, highlighting the key aspects of the private initiative procedure and adding some interesting considerations that remain outside the formal procedures established by law. He also gave some tips on minimizing the risks arising from the gaps in, or ambiguous interpretation of the current legislation.

Irina Dolgikh gave a comparative analysis of the private concession initiative procedure and private initiatives under 224-FZ, offering some advantages of each option for private and for public partners. She then spoke about the first experience of using private concession initiatives, analyzing real applications, pointing out some pitfalls and sharing some tips on how competent authorities should formalize the key project documents.

VEGAS LEX lawyers also led a workshop on Choosing criteria to be guided by when selecting a private partner/concessionaire. They suggested the basic principles and approaches to working out the competition criteria, the requirements for the entrants and supporting documents, and highlighted individual issues of forming a consortium for the competition. With two cases used as an example, the participants together with the speakers simulated using the VEGAS LEX-proposed approach to drafting the competition criteria and requirements for the entrants. The energetic response from the workshop participants showed that they have adopted the proposed approach, which will, hopefully, help them improve their practice of implementing PPP projects.

The VEGAS LEX experts also discussed PPP projects development in Russia, the development of the social, utilities and transport infrastructure through public-private partnerships, the legal structuring of a concession project, the main aspects of financial structuring of PPP projects, the matrix of risks in PPP projects, ways to attract financing PPP projects and other issues.

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* The professional development program was designed for managers and specialists from the regional authorities, local authorities, development corporations, PPP development centers that are responsible for the implementation of PPP projects, for the regulatory and institutional support of public-private partnerships, and have a basic competence in the issue. The program was organized by the Department of Economic Policy and Public-Private Partnership of MGIMO and the Public-Private Partnership Development Institute, with the support of the Public-Private Partnership Development Center.

For more information on VEGAS LEX’s PPP and infrastructure projects, please go here.