OREANDA-NEWS. January 11, 2010. State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and the United Nations Development Programme (UNDP) signed a Project Document and an Agreement on Profit Sharing under the Joint Project “Development of Public Private Partnership in Russia.”

On behalf of Vnesheconombank the Documents were signed by Management Board Member – Vnesheconombank Deputy Chairman Anatoly Ballo and on behalf of UNDP – by its Resident Representative in the Russian Federation Frode Mauring.

For the most part, the Project aims to enhance the Russian Federation’s potential in private public partnership (PPP). The Project provides for upgrading the legal framework at federal and regional levels, introducing modern managerial and financial instruments in the field of PPP, boosting the potential of existing PPP centers and regional PPP centers being set up, implementing pilot (demonstration) projects in Russia’s regions and CIS countries with subsequent experience sharing. The Project would improve the quality and increase the rate of human potential development in the Russian regions.

Federal legislative and executive authorities, specialized agencies and UN programs, regional administrations, municipalities, private operators, regional banks, environmental institutions and other interested parties will participate in implementing the Project. Vnesheconombank’s Public Private Partnership Center will act as the Project’s coordinator.

The Project provides for setting up an Expert PPP Council to be comprised of representatives of federal executive and legislative authorities, the business community, development institutions and international institutions. The Council’s main functions will be to publicly discuss potential administrative and technological solutions, proposals for upgrading regional and federal applicable legislation in the field of PPP, work out recommendations and proposals for introducing amendments in federal and regional legislation as well as provide expert support in the course of planning and implementing demonstration projects.

Pilot projects are scheduled to be implemented in the following lines of activity: water supply and water disposal, production and consumption waste management, energy efficiency, transport infrastructure development, construction and servicing of social infrastructure facilities, housing construction and a mortgage-lending program.

Vnesheconombank jointly with UNDP will be responsible for selecting regions and projects. One of the main factors in selecting regions and municipalities will be regional and local authorities’ readiness to implement economic development strategies based on PPP principles which makes it necessary to make appropriate changes in the regulatory and legal network, introduce changes in the existing target programs or adopt new long-term target programs based on PPP principles as well as their readiness to give private operators access to regional markets in pursuance of the Russian Federation’s policy on enhancing competition.

As agreed upon by the Parties, Alexandr Bazhenov, Vnesheconombank’s Public Private Partnership Center Director, is appointed as National Director of the Project.