Public-private partnership

Public-private partnership (PPP) is a long-term mutually beneficial cooperation between a public and a private partner aimed at implementation of projects in order to achieve the goals of social and economic development of public-law entities, to increase availability and quality of public services by means of risk-sharing and attraction of private resources.

The aim of PPP in economic terms is the stimulation of attraction of private investments in the provision of services, works and production of consumer goods.

Main features of PPP:

long-term partnership (for PPP agreements not less than 3 years), relations within such agreements last from 10 to 49 years
sharing risks and responsibilities between partners
full or partial financing for the creation of public infrastructure facilities by a private party
pooling of resources of a public and a private partner

Main forms of PPP:

PPP agreement
concession agreement (CA)

Development of PPP in Leningrad region:

The Ministry of Economic Development of the Russian Federation annually prepares the ranking of Russian regions in terms of PPP development. According to the results of the ranking, Leningrad region occupied the 14^th place in 2019.

5 projects are being implemented under concession agreements in Leningrad region:

Construction of a swimming pool in Gatchina

A swimming pool with the seats for spectators will include 3 swimming pools (for sport, wellness, teaching 7-10 year old children how to swim) with the total water area amounting to 800 square meters, and 4 gyms with the total area of 652.5 square meters.

Address of the facility: land plot No. 13a, Generala Knysha street, Gatchina

Budget of the project: 690 million rubles

Project implementation scheme: concession agreement (DBTO model: Design-Build-Transfer-Operate)

Project implementation phases:

On 21 July 2017 the Government of Leningrad region and Gat Swimming Pool LLC concluded a concession agreement for implementation of the project in Gatchina, duration of the concession agreement – 20 years.

In June 2018 work on designing the subject of the concession agreement was completed. Currently construction and installation work is being carried out. Expected commissioning deadline – September 2020.

Expected results of project implementation:

Increase of the quality and availability of sport for population.
Increase of the throughput capability of the swimming pools by 113 people per hour.
Reduction of simultaneous load on the regional budget by means of attraction of private investments.
Creation of new jobs.

Construction of a swimming pool in Sertolovo

A swimming pool in Sertolovo will include 3 swimming pools (for swimming, teaching children from 14 year old and adults how to swim, teaching 7-10 year old children how to swim) with the total water area amounting to not less than 520 square meters, and 2 gyms with the total area of not less than 700 square meters.

Address of the facility: land plot No. 15, Vostochno-Vyborgskoe highway, Sertolovo, Vsevolozhsky district

Budget of the project: 696.3 million rubles

Project implementation scheme: concession agreement (DBTO model: Design-Build-Transfer-Operate)

Project implementation phases:

On 8 August 2018 the Government of Leningrad region and Atlantika Swimming Pool LLC concluded a concession agreement for implementation of the project in Sertolovo, duration of the concession agreement – 20 years.

In November 2019 work on designing the subject of the concession agreement was completed. Construction and installation works were launched in December 2019. Expected commissioning deadline – December 2021.

Expected results of project implementation:

Increase of the quality and availability of sport for population.
Increase of the throughput capability of the swimming pools by 78 people per hour.
Reduction of simultaneous load on the regional budget by means of attraction of private investments.
Creation of new jobs.

Creation of Leningrad regional centre for medical rehabilitation

Reconstruction and equipment of the former city hospital buildings for creation of Leningrad regional centre for medical rehabilitation with 300 hospital beds.

The modern medical rehabilitation centre will allow providing recreational, diagnostic, medical and rehabilitation services for the residents of Leningrad region in such directions as cardiology, neurology (including 60 beds under compulsory medical insurance system), the human musculoskeletal system and the peripheral nervous system (including 60 beds under compulsory medical insurance system).

Address of the facility: 3 Stroiteley street, Kommunar, Gatchinsky district

Budget of the project: 3.15 billion rubles

Project implementation scheme: concession agreement (DBTO model: Design-Build-Transfer-Operate)

Project implementation phases:

On 17 March 2017 the Government of Leningrad region and Special Project Company XXI Century LLC concluded a concession agreement for the creation of Leningrad regional centre for medical rehabilitation, duration of the concession agreement – 28 years.

In December 2018 work on designing the subject of the concession agreement was completed. Currently, construction and installation work is being carried out. Expected commissioning deadline – 2021.

Expected results of project implementation:

Increase of life expectancy at birth by project completion date – 77.8 years (or by 7.8%).
Reduction of mortality per 1,000 people by project completion date – 13.6 (or by 2.8%).
Increase of availability of medical rehabilitation due to the placement of 300 beds (99,000 bed days), including 120 beds under a compulsory medical insurance system (39,600 bed days).
Increase of availability of primary healthcare by 11,200 visits per year.
Creation of 610 new jobs.

Creation of a nursing home of a general type with gerontopsychiatric department

Social service facility – a nursing home of a general type with gerontopsychiatric department in Sverdlova settlement with 144 beds (including 69 public ones).

Address of the facility: urban settlement named after Sverdlov, Vsevolozhsky municipal district

Budget of the project: 333.2 million rubles (excluding expenses on the connection of the facility to utility system)

Project implementation scheme: concession agreement (DBTO model: Design-Build-Transfer-Operate)

Project implementation phases:

On 30 December 2019, the Government of Leningrad region and Senior Group PPP LLC concluded a concession agreement for the implementation of the project. Duration of the concession agreement – 20 years.

Expected commissioning deadline – June 2022.

Expected results of project implementation:

Increase of the period of active longevity and healthy life expectancy of the population.
Increase in availability of long-term care services for the population.
Increase of participation of non-governmental organizations in the provision of social services.
Reduction of simultaneous load on the regional budget by means of attraction of private investments.
Creation of new jobs.

Reconstruction and capital repairs of the Ladoga conduit

Reconstruction and capital repairs of a socially significant facility “The centralized water supply system Ladoga conduit in Vsevolozhsky municipal district, Leningrad region”.

Budget of the project: 3,255 million rubles

Project implementation scheme: a concession agreement (DBTO model: Design-Build-Transfer-Operate)

Project includes:

Modernization of the Ladoga pumping station
Capital repairs of the Ladoga conduit
Expansion and reconstruction of the water treatment facilities in Vsevolozhsk
Expansion and reconstruction of the water treatment facilities in Kuzmolovsky urban settlement

Expected results of project implementation:

Improvement of the quality of water supply in accordance with the sanitary norms and rules.
Increase in drinking water supply in order to satisfy increasing needs.
Increase of the capacity of water treatment facilities: in Vsevolozhsk – up to 40,000 m3/day, in Kuzmolovsky – up to 30,000 m3/day.
Prevention of increase in the specific consumption of electricity in conditions of the growing loan.

Committee for Economic Development and Investment Activity of Leningrad Region is in charge of public-private partnership in the region. PPP Centre was established in the Committee as a department for development of public-private partnership.

Contacts
Egor Nikitenko – Head of PPP Development Department
Address: 6 A Lafonskaya street, office 425 (4th floor), Saint Petersburg, 191311
Phone: + 7 (812) 539-43-88
E-mail: ppp@lenreg.ru
Official website: www.econ.lenobl.ru