PPP and Project Financing 2025: Rules of the Game for Business and Government

In order to achieve Russia’s national development goals of improving living standards, improvements need to be made to the mechanisms used to build and renovate both industrial facilities and infrastructure on a national scale and in individual regions. Given the current limited financial resources, the construction of the high-quality and modern facilities needed for economic growth can only be ensured through legal partnership mechanisms between the state and business with the use of resources from funding organizations based on project financing. Social infrastructure projects, many of which do not generate income, but are essential to regional development, require a special approach within the framework of PPPs. Decisions on their implementation should not only take into account their economic benefit, but also their socially beneficial effect to an event greater extent. Russian President Vladimir Putin has emphasized the importance of developing PPPs as a mechanism for implementing socially important projects as well as the need to fairly distribute risks between the participants in such projects. The main objective of the regulatory rules that are being established should be to balance the interests of the private and public parties, taking into account the specifics of individual projects. As a development institution, VEB.RF has been assigned a special role in developing new approaches to implementing PPP projects and conducting risk assessments to make informed decisions about whether to implement such projects. What risks are associated with implementing concession projects and PPP projects, and what are some of the problems associated with legal regulation? How are legal mechanisms for distributing risks developing when structuring and implementing PPP projects, as well as concession projects: is regulation being tightened or liberalized? What legal mechanisms for distributing risks between financing organizations exist when implementing investment projects? What are some of the new forms of partnership in building social facilities?