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The Ministry of Economic Development approved a methodology for calculating "The Index of the Level of Development of Public-Private Partnerships in a Constituent Entity of the Russian Federation" for 2019 according to which the Ministry would form a rating of regions by the level of public-private partnerships (PPP) development for 2019 with attraction of independent expert organizations.
The methodology is based on the approaches that previously existed and were applied to calculate the rating, in which some point changes aimed at increasing the transparency of the rating calculation procedure had been introduced according to the results of discussions with representatives of regions and experts. In particular, the number of expert rates for assessing the implementation of PPP projects, as well as the institutional environment and legal support for the PPP sphere in the subjects of the Russian Federation, is decreasing. In addition, the estimates of a pool of independent expert organizations that are included in the list published at the Ministry’s website are considered in order to increase the objectivity of the quality criteria.
It is also recorded that the experience of regions in the implementation of PPP projects (measured by the non-budget investment amount in PPP projects) is determined by the Ministry on the basis of the information contained exclusively in “Management” government-controlled automated information system. It is the official information system for monitoring concession agreements, PPP agreements and municipal private partnership agreements.
The methodology will become a transitional stage in the transition to a new methodology, which implies conceptual changes in existing approaches to calculating the PPP rating starting in 2020. The order of the Ministry of Economic Development on its approval will be adopted before the end of 2019.
The purpose of the new methodology is to stimulate the executive authorities of constituent entities of the Russian Federation and local governments to more actively use PPP mechanisms to attract private investment in infrastructure development, thereby assisting in the implementation of the provisions of Presidential Decree “On National Objectives and Strategic Development Goals of the Russian Federation for the Period up to 2024” dated May 7, 2018 No. 204.
In this regard, under the framework of the new methodology in calculating the index, the significance of experience in implementing PPP projects (estimated by the total investments in PPP projects) is increased. In addition, the changes are entered in the assessment of the regulatory and institutional environment of PPPs conditioned upon trends in the development of the PPP sector, the regulatory framework at the federal and regional levels, as well as the necessity to promote transparency of the estimates received.