Participation in the international conference with the subject: «State and private partnership: new capabilities for the infrastructure development in the countries with transitional economy»

Delegation of JSC «Evrasiyskiy» headed by Sergey Yashechkin, Chairman of the Board of Directors, participated in the international conference with the subject: «State and private partnership: new capabilities for the infrastructure development in the countries with transitional economy».

The conference took part in Moscow on October 21-22, 2008. The first conference day dedicated to the political and institutional development problems of the State and private partnership, was organized with the assistance of Vnesheconombank, in the structure of which there is the Center of State and private partnership the only one in the Russian Federation. The second day of the conference was carried out by the State University — Higher School of Economics. The subject of the day was dedicated to the development of the practical skills in the State and private partnership field. 

In his speech Vladimir Dmitriyev, Chairman of Vnesheconombank, said: «In 2008 Vnesheconombank administration made decisions about financing 70 investment projects, about half of them are projects in infrastructure. The State and private partnership mechanism for development of infrastructure projects is the only possible and right. Development of objects, which constitute the infrastructure, is always connected with significant expenses. Anyway the financing rates exceed the capabilities of the regional and city budgets. But the problems need to be solved, because infrastructure development directly provides economic growth. Besides, there is an issue of quality of the public services. That is why to solve the problems the authorities attract private business and enter into partnership with it».

One of the examples of successful collaboration of the Development Bank with private business in the field of infrastructure is collaboration with JSC «Evrasiyskiy», said Alexander Bazhenov, Director of the Center of State and private partnership with Vnesheconombank. Being a successful Russian water supply and water disposal operator, the company attracted attention of the development institute. Mr.Bazhenov also stated that Vnesheconombank assists at the capital of «Evrasiyskiy». 

In the work of plenary session «Creation of organizational potential for State and private partnership project market development» there participated Sergey Victorovich Yashechkin, Chairman of the Board of Directors, JSC «Evrasiyskiy».

«Evrasiyskiy» has experience in realization of State and private partnership projects in several Russian regions. Productive joint operation of the company and Vnesheconombank allowed mobilizing the global investment program in Rostov region, starting realization of investment projects in the towns of the Azov and Black Sea area of Krasnodar Territory. Sergey Yashechkin thanked the Administration of Vnesheconombank «for confidence and trust in realization of the infrastructure projects». 

In his report dedicated to institutional restrictions in the realization of the infrastructure projects Sergey Yashechkin stressed on the huge positive role of the Investment Fund RF for the realization of investment projects, which are of State importance and are realized on terms of the State and private partnership. As a result the attitude to the question of qualitative reasoning of investments, qualitative provision of projects with the initial data and project documentation has changed if compared to the situation before. Today it is necessary to increase the Investment Fund work efficiency, emphasized Mr. Yashechkin. At the same time a positive thing to increase transparence and decrease administrative barriers is introduction of the «one window» principle and united investment consultant — «Vnesheconombank», which allow simplify the procedure to undergo examinations by experts and various approvals. 

«The best incentive for project development is the demand from the State», — mentioned Mr.Yashechkin.  In addition to that he clearly defined the problems of realization of infrastructure projects on the principles of State and private partnership. First of all, he touched upon the problems of the current projects, which are being realized with the assistance and means of the Investment Fund RF and which have already passed all stages of consideration and approval, provided by the regulation of the RF Government «About approval of rules for formation and use of the budgetary allocations of the Investment Fund RF».

Sergey Yashechkin imparted his apprehensions in connection with the made decisions about use of means of the Investment Fund RF in 2008 for efficient solution of the current issues related to the situation in the market. He suggested sending part of the Investment Fund RF to compensate financial risks, which increased because of the known circumstances for already selected projects under realization. «Otherwise, they will be not realized. It is a real fact», — stressed Mr. Yashechkin.

There are some problems in the realization of the new projects. First of all, the concept design stage of the State and private partnership projects in the investment and project cycle is the most risky and extremely expensive. For example, preparation of the application of the company «Evrasiyskiy» to the Investment Fund was under consideration for 2.5 years and cost the company 2 million dollars. Today it is necessary for the State to consider the possibility to finance, to give special purpose funding or their part for the concept design stage, collection of initial data, project formation. Otherwise, there will be no new projects. Very often companies have no means for that stage. The company resources accumulated for the time being is absorbed by the situation with the market short-term liquidity. 

There is a strong need to accept a real program of measures to support the sector as soon as possible.  Sergey Yashechkin applied with request to his colleagues from the sector, profile partners to consolidate efficiently realized measures as soon as possible, to discuss them and approve them. 

In his speech Mr.S.Yashechkin emphasized two main things, which hold back the quality of the investment infrastructure projects and their development. First, there is a lack of qualified customer. The  the life support systems for the territories are within the current legislation, as a rule, are state property, property of the subjects of RF or local authorities. Most often the infrastructure owner is not able to determine qualitative and quantitative demand on investments. Among most undeveloped «concept design stage work» areas of the infrastructure objects owners there is lack of town-planning documents,  engineering services detailed development plans, registration of property rights of municipal establishments for the most of linear infrastructure and as a result, understanding of the actual objects and their condition. 

Second, there is a lack of «qualitative customers» and «qualitative contractors» for re-engineering of the infrastructure systems. 

It was mentioned that for the time being the demand on the long-term investments has been suspended because actually for the communal infrastructure there is only one contract form — a concession. It is extremely labor-intensive and expensive and for many cities, especially small towns and settlements, it is unrealizable. 

If no particular actions to normalize the situation at least with the main legislative and normative acts, regulating project and investment cycle, are made, there will be no success, — stressed on Sergey Yashechkin in his speech. 

One thing goes without saying: State and private partnership is our future. Because of the necessity to provide the customers with qualitative services, increase their number, economy growth the countries with transitional economy need to develop their infrastructure, increase the efficiency of the limited state resources use.  It is the State and private partnership that shall become a proven mechanism, which satisfies rigorous criteria of its participants.

back to list