Private investments in social infrastructure

As a rule, PPP projects in the social field do not make profit and the repayment of the investments is ensured by the government. Preparation of such projects is longer and the total cost of implementation often exceeds the volume of expenses by the government order. Nevertheless nowadays almost all the regions strive to develop objects of social infrastructure with participation of resources of private investors.

The most acute problems, existing in different parts of the country, are catastrophic deficit of places in kindergartens, out-of-date out-patient hospitals, pre-emergency condition of schools and sport and recreation centres etc. Problems in the social infrastructure concern every citizen, and often its condition is the criterion for the population to evaluate the activity of the authorities and life quality in a certain region.

Perhaps the most renowned projects of social infrastructure development in Russia were implemented on the basis of RC “Slavyanka” in Saint-Petersburg — on September, 1, 2014 6 educational institutions, built with the help of PPP mechanisms, will open their doors. Now it is planned to build an out-patient hospital for adults and kids on the territory of the complex at the expense of investor. Although there is still no information concerning the date when the tender will be announced. The task is planned to be fulfilled on the square area of 1,3 ha within three years after signing of the agreement with investor. According to preliminary analysis, the volume of investments in the project will comprise 1 billion rubles, and agreement term with the investor will be 30 years. Within this term the city will refund the company’s expenses, and the out-patient hospital will become a property of the city.

Besides, in the third quarter of 2014 it is planned to announce a PPP-tender in the Northern Capital for the construction and operation of the new block of hospital No. 40 in Sestroretsk. The volume of investments in the project is estimated as 5,75 billion rubles. Investor will build and maintain the new building within 10–15 years, after which it will also become a property of Saint-Petersburg. Within this term the public partner, represented by the city, will refund the investor with budget monetary means, in order to ensure him a guaranteed income and return of the investments.

An ambitious plan was announced in summer in Chelyabinsk district, which includes the plan to build a 41 kindergarten within 3 upcoming years within PPP scales. And in Vologda district, for example, in summer of 2014 7 areas in Cherepovetsk were provided in order to construct sport objects on them on the basis of PPP — fitness-clubs, swimming pools, tennis courts. The city will provide a land area and will ensure it with infrastructure and maintain it within the scopes of collaboration. The private partner, in his turn, is obliged to construct objects and operate them within an agreed period of time.

The social field of Russia, no doubt, needs private investments, as well as all the advantages, implemented by the business, — innovational technologies, resource efficiency and other elements of economy modernization. More over, starting from February, 2015, a mechanism, such as payment of public partner, which is so relevant for the non-commercial projects and which is able to extend the possibilities in case of their implementation, is spread to social objects due to the amendments to the Federal Legislation “Concerning concessional agreements”, approved in July.