1. Mechanisms of realization of rental housing
projects based on Public-Private Partnership in
Russian Federation
NATIONAL
AGENCY
OF RENTAL
HOUSING

2. О НАС / ABOUT US
• Pattern of ownership- Joint-Stock Society
• Full name –NATIONAL AGENCY OF SOCIAL AND
COMMERCIAL RENTAL HOUSING STOCK DEVELOPMENT
• Shortened name –
NATIONAL AGENCY OF RENTAL HOUSING
• Share capital– 30 000 000 rubles
• Number of established companies – 6
(St. Petersburg, Saratov, Perm, Yekaterinburg,
Irkutsk, Tver)

3. PPP Subject in Rental Housing
Domain
• Includes the relations during interaction
between public and private sector
concerning construction (also
reconstruction and modernization) of
rental accommodations, operation and
managing of infrastructure units.

4. Economical phases of PPP
• First phase - “cost phase” during which the private and
public sides invest finances in rental housing units (and
other infrastructural units that are connected with public sector
functions);
• Second phase - “income phase” during which services
are provided via the units and return on investments occurs.

5. Objective of using PPP in
rental housing
Key
Components
To speed up the rate of socio-
economic development of the
region at the cost of extra
investments in residential
construction, drawn from off-
budget sources, as well as at the
cost of improving the service
quality of the public sector;

6. Objective of using PPP in
rental housing
Key Components
To save budget funds in
the short run by allocating
the financing in the long
run;

7. Objective of using PPP in
rental housing
Key Components
To increase efficiency
of budget funds’ use
via involvement of the
private sector

8. Risk Division
Risk Division
is an
indispensable
condition of PPP
relations
The Difficulty of applying this policy is
as follows
On one hand, the private investor seeks
to increase income and thus is inclined
to underestimate the risks of the PPP
project (direct relation “risk – income”);
On the other hand, the public body
tends to reduce responsibility and thus
is inclined to maximize the risks that
are passed on the private sector
(inverse relation “risk – income /
responsibility).

9. Contractual and legal forms of PPP
in Rental Housing
Concession
agreements in
accordance with
Law on
concessions.
Agreements on
Public-Private
Partnership within
the bounds of PPP
legislation.ГЧП.
1 2
Non-concession contract forms, stipulated by
Civil Code of Russian Federation, adjusted for
required standards of applicable federal
legislation.
3

10. Advantages of concession
agreement
1
2
3
Clarity of legal regime in view of availability
of a separate federal law, which regulates the
order of concluding and implementation of
PPP agreements
Availability of certain practice in realization
of concession projects, including those of a
regional level.
Possibility to apply separate mechanisms of
state support and PPP instruments,
including investment involvement by means
of publishing concession bonds.

11. Base models of PPP, stipulated by regional
laws on PPP
Construction - Ownership -
Exploitation - Transfer
COET
Construction - Ownership -
Exploitation
COE
Construction - Exploitation
-Transfer
CET

12. Forms of Private associate’s
Participation in PPP projects
Designing
Modernization
Maintenance Financing
Exploitation
Construction

13. Advantages of contractual and legal
form of PPP
Flexibility in structuring of the project,
implemented on PPP agreement bases.
1
Possibility to use other forms in case of
inapplicability for specific conditions of the deal,
including restrictions by Law of concessions, which
influence securing the financial attractiveness of the
project and complying with project creditors’ interests.
2
Occurrence of successful experience in
realization of PPP projects within the bounds of this
form (in other domains).
3

14. Non-concession legal and
contractual forms of PPP
• Investment contracts between public and private partners
determined by article 421 of Civil Code of Russian Federation
and Investing Activity Law
• Operator agreement can also be counted as a contractual form
of PPP; it is used as a contractual form in order to realize
infrastructural investment projects.
• Lease contract with investment conditions. These conditions
assume investments into development (reconstruction) of the
leasehold by the leaseholder at the cost of personal means or
loans (including housing and communal economy sphere)
• (Regulations of corresponding regulatory framework and
development of court practice impose restrictions on financial
instruments available for use )

15. Public Policy documents of Rental Housing
development in the region in PPP form
Order document on rental housing PPP
development on superior government body level of
subject of the Russian Federation
1
Model plan of development and creation of Rental
Housing stock by using PPP
2
Socio-economic development strategy of subject
of the Russian Federation, including regulations on
Rental Housing development by using PPP
3
Long run goal-oriented programs of subject of the
Russian Federation, including affirmed PPP Rental
Housing projects.
4

16. Financing Structure of Rental Housing
Projects

17. Capital Costs Financing Instruments in PPP
Rental Housing Projects
Long-run Financing
– Bond interest,
including retirement
fund means, drawn
by issuing
mortgage, corporate
and concession
bonds; Financial
institution loans
(ВЭБ, ЕБРР, IFC
and others.)
Grants by
international
financial
institutions
Shared
Sponsorship,
Including
personal funds of
the private
investor as well as
those of National
Welfare Fund

18. Monitoring and control of
implementation of PPP
agreements
Compliance of liabilities by both parties of PPP
agreement, including
– Continuity of delivering and high quality of infrastructure
services of the property;
– Timely payment pattern by both parties of PPP
agreement.
1
- Risk Management of Public and Private Parties;
-Organization of responsible authority work;
-Project modifying activity;
- Environmental changes response, in accordance to
threats and new opportunities for the project.
2
Transfer of assets and other transaction control upon
completion of the project
3

19. ЭФФЕКТИВНОСТЬ РЕАЛИЗАЦИИ ПРОЕКТОВ
СТРОИТЕЛЬСТВА АРЕНДНОГО ЖИЛЬЯ ПО СХЕМЕ
ГЧП
1.1
2.1
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2.7
2.8
2.9
1.2
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20. 38-1 Obraztsov Str.,Moscow, Russia
(495) 689 – 93-74
gosnaim@ya.ru
Mikhail Grin – General Director
Thank you for your attention!
NATIONAL
AGENCY
OF RENTAL
HOUSING