Alexander Bazhenov – Director,PPP Center of Vnesheconombank London February 22, 2012
RUSSIAN INFRASRTRUCTURE IN BRIEF} Russia`s GDP in 2011: $1.9 trillions*} Amount of investments in infrastructure in 2010: 4% GDP**} Projected investment demand in infrastructure up to 2020: more than USD 1 trillion***} Number of public stuff (2010): 1.648 millions} PPP projects >400* Rosstat** Rosstat, 2010*** Ministry of Economic Development RF, 2007 2
PPP IN RUSSIA IN BRIEF} No official PPP policy programme} Federal legislation (Public procurement law, Competition law, Concession law, Land law)} Regional PPP legislation (56 regional PPP laws)} Sources of Funding (International financial institutions, Russian financial institutions, commercial banks, non-government pension funds)} State support options (Vnesheconombank, sovereign guarantees, RF Investment Fund )} PPP institutions 3
KEY SECTORS FOR DEVELOPMENT OF PPP PROJECTS Transport Ecological Water Energy infrastructure efficiency Territorial Social Security & ITdevelopment infrastructure safety 4 4
MAJOR PPP PROJECTS IN RUSSIA} Airports: Domodedovo, Pulkovo} Highways: 15-58 and M4 (concessions)} Water: BOTs in Moscow and St.-Petersburg, Rostov-on-Don lease and investment contract, over 30 long term leases in various cities, Krasnodar region (concession)} District heating: Irkutsk (concession), over 30 long term leases in various cities} Waste management: Yanino plant BOT, Nizhny Novgorod and Volgograd region (concessions)} Social infrastructure: Nizhny Novgorod sport centers (concessions), St.-Petersburg schools & kindergartens (BOT)} Infrastructure for regional development: project co-financed by the State Investment Fund project, project in Kaluga 5
VNESHECONOMBANK’S PROFILE 100% ownership of the Russian Federation “State Corporation” Status (a non- Tax-exempt commercial income organization)Special Federal Chairman of theLaw No. 82-FZ Supervisory “On Bank for Board - PrimeDevelopment” Minister ot the RF Viability principle (payback period, Not subject to remuneration, regulation by the investment recoverability) RF Central Bank 6
VNESHECONOMBANK’S PPP CENTER: INVESTMENT ADVISORY SERVICESfunction of the Russian Government financial assistance to regional andadvisor to assess financial, municipal project developmentbudgetary and economic efficiency (FARMPD) – Rub 2 bn annually fromof project applications for the State 2011 to 2015 (Vnesheconombank`sInvestment Fund subsidies Supervisory Board decision, 09.12.2010) 2009 2010 2011 - 2015 a Single Provider of Services on Investment Consulting for the State Needs of the Russian Constituent Entities to Form Investment Projects on the terms of public private partnership (Government Order №1372-r of 17.08.2010) 7
PIPELINE OF PPP PROJECTS* SPHERE OF PUBLIC APPLICATIONS FROM INFRASTRUCTURE AUTHORITIES Environment 34 Energy efficiency 10 Territorial development 15 Transport 16 Social infrastructure 17 Government 1* as for July 14, 2011 8
PIPELINE OF PPP PROJECTS IN 2012CONSTRUCTION OF THE BRIDGE OVER THE VOLGA RIVERIN NIZHNY NOVGOROD REGION Sector of public infrastructure Transport Region Nizhny Novgorod region SubjectConstruction of the bridge over the Volga river in Podnovie CAPEX $1.28 bn Payback period TBD Advisors Egis – technical adviser Herbert Smith – legal adviser PPP model TBD (concession or LCC) 9
PIPELINE OF PPP PROJECTS IN 2012NEW CONSTRUCTION OF KINDERGARTENS AND SCHOOLSIN KHANTY-MANSIYSK REGION Sector of public infrastructure Education Region Khanty-Mansiysk Region - Yugra Subject New construction of 61 kindergartens and schools in Khanty-Mansiysk region CAPEX $ 655 mln Payback period 15 years AdvisorsBDO– economic & legal advisor NAMIKS– technical advisor PPP model BOLT Intermunicipal agreement 10
PIPELINE OF PPP PROJECTS IN 2012NEW CONSTRUCTION OF KINDERGARTENSIN ASTRAKHAN REGION Sector of public infrastructure Education Region Astrakhan region Subject New construction of 39 kindergartens in Astrakhan region CAPEX ~$ 113 mln Payback period ~10 years Advisors BDO–legal advisor NAMIKS– technical advisor PPP model BOLT 11
PPP IN RUSSIA WEB SITE www.pppinrussia.ruAll about PPP in Russia: www.pppinrussia.ru 12
Thank you ! PPP CENTER VNESHECONOMBANK9 Ak. Sakharov ave., Moscow, Russia tel.: +7 (495) 721-9332 fax: +7 (495) 604-6718 www.veb.ru www.pppinrussia.ru
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