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The review is a first comprehensive publication of official statistics on the state of PPP sector in Russia collected and processed by the Ministry of Economic Development using the State Automated System “Upravleniye” (SAS “Upravleniye”).
As of the beginning of 2020, there were almost 3.1 thousand existing or completed as expired concession agreements in Russia with a total investment commitment of more than 1.7 trn rubles, of which 1.2 trn rubles (or more than 70 %) are non-budgetary investments.
However, investment commitments under such concession agreements amount to only 1.6 % of Russia's GDP for 2019. For reference, in the UK, this level is at least 6.6 % of GDP, in Australia and New Zealand — 6.9 % of GDP, in Canada — 8.1 % of GDP. This indicates insufficient level of infrastructure investments through concessions.
For example, concessionaire agreements are used to attract infrastructure investment in 81 of 85 regions of the Russian Federation. More than 100 concessionaire agreements have already been signed in 10 regions.
The largest amount of investment (42 %) is provided for under the framework of concessionaire agreements executed at the federal level, of which transport infrastructure accounts for 96 %. At the same time, the largest number of concessionaire agreements were executed at the municipal level (94 %), of which housing and utility infrastructure accounts for 93 %.
Moreover, large concessionaire agreements are not numerous: only 32 such agreements with investments of 10 bln rubles and 93 agreements with investments of 1 to 10 bln rubles have been concluded. One third of the concessionaire agreements is currently at the initial stage of implementation (design or construction), and these agreements account for 61 % of the total investment obligations under all concessionaire agreements.
The average term of the concessionaire agreement in all areas is 12 years, in transportation sphere — 21 years, in the social sphere — 22 years.
Further, Ministry of Economic Development of Russia intends to regularly publish topical data on PPP market development in Russia.