The Ministry of Finance of Russia, the Ministry for Economic Development of Russia and Liniya Prava have commenced preparation of a draft law on public-private partnership
PUBLIC-PRIVATE PARTNERSHIP IN RUSSIA
The Ministry of Finance of Russia, the Ministry for Economic Development of Russia and Law Firm Liniya Prava have commenced preparation of a draft law on public-private partnership. The draft law will contain interesting and helpful information for investment bankers, investors, developers, legal counsels and other participants of the project finance market.
The Law “On public-private partnership” will establish legal grounds for public-private partnership ("PPP") in Russia and provide market participants with a broad range of legal instruments, such as:
1) Multiple PPP forms, including:
- build-transfer-operate (BTO);
- build-own-operate (BOO);
- operation and maintenance;
- buid-own-operate-transfer (BOOT);
- build-own-lease(-transfer) (BOL/BOLT).
2) Pledge of a PPP property as security to the PPP project creditors.
3) Flexible description of the object of pledge allowing taking security over all assets of the project.
4) Collective security arrangements.
5) Assignment of future rights and bulk assignment of rights.
6) Flexible structuring of payments to the private partner from budgetary funds, which enables structuring of a PPP under the lifecycle contract model and carry out PPP projects that do not involve collection of payment from end-users (e.g., kindergartens, schools, hospitals).
7) Ring-fencing and protection of project assets with a bankruptcy remote special purpose company.
8) Mechanism for proposing and approval of PPP projects.
9) Flexible and dispositive terms of a PPP contract.
10) Assignment of contract.
11) Direct agreement.
12) Intercreditor agreement.
13) Protection of rights of and remedies for private partners connected with unfavourable change of laws and breach of obligations of the public partner.
14) Monitoring of and disclosure of information about the PPP project.
By now the first draft of the law is being prepared.
In the special section “Public-Private Partnership” we will cover the process of development of the draft law, attach documents and place information regarding development stages.
To make the future law more marked-oriented we will be happy to review and take into account any proposals for the improvement of provisions of the current version of the draft law.
Please address any questions or propositions regarding the draft law to Liniya Prava: email@example.com