Public-Private Partnership

Main information platform on PPP in the Leningrad region

Basic information about the experience of implementing PPP projects in the Leningrad region is presented on the information resource of the Committee for Economic Development and Investment Activity in the section “Public-Private Partnership”

Characteristics of PPP

Public-private partnership (PPP) is a long-term mutually beneficial cooperation between public and private partners, aimed
at implementing projects in order to achieve the tasks of socio-economic development of public-law entities, increase the level of accessibility and quality of public services, achieved through risk sharing and attraction of private resources.

The goal of PPP from an economic point of view is to stimulate the attraction of private investment in the production of services, works and consumer goods.

Main features of PPP

long-term nature of the partnership (for PPP agreements, at least 3 years). Relations under such agreements last from 10 to 49 years;
distribution of risks and responsibilities between partners;
full or partial financing of the creation of a public infrastructure facility by the private party;
pooling of resources of public and private partners.

Main forms of PPP

PPP agreement (Federal Law dated 13.07.2015 No. 224-FZ “On public-private partnership, municipal-private partnership in the Russian Federation and on amendments to certain legislative acts of the Russian Federation”);
concession agreement (CA) (Federal Law dated 21.07.2005 No. 115-FZ “On concession agreements”).

In these agreements there are two parties – the public partner (under a CA, the grantor) and the private partner (under a CA, the concessionaire).

Main differences between a PPP agreement and a CA:

ownership of the object of the agreement under a PPP may arise with the private partner, while under a CA it always remains with the public party (the grantor);
operation under PPP agreements may be assigned to the public partner, while under a CA it is always assigned to the concessionaire;
each of these forms of agreement has its own list of objects in respect of which they may be concluded;
PPP projects require an assessment of the project's effectiveness and justification of its comparative advantage;
the private partner under PPP agreements may only be Russian legal entities. Under a CA, a foreign legal entity may act as the private partner.

Support measures

The following regional laws of the Leningrad region have been adopted in the Leningrad region, providing support measures for PPP projects
and concession agreements:

Regional Law of the Leningrad region dated 25.11.2003 No. 98-oz “On Corporate Property Tax”, according to which organizations that have concluded concession agreements with Leningrad region in accordance with Federal Law
dated 21.07.2005 No. 115-FZ “On Concession Agreements” are exempt
from taxation in respect of immovable property that is the object of these concession agreements for the period of validity of the concession agreements.

Law of the Leningrad region dated 29.12.2012 No. 113-oz “On the regime of state support for organizations carrying out investment activities in the territory of the Leningrad region, and on amendments to certain legislative acts of the Leningrad region”, which:

establishes a reduced rate of corporate property tax;
establishes a reduced rate of corporate income tax;
provides information and consulting support for investment activities within the framework of an investment project implemented by the organization.

These support measures are provided to organizations that meet the conditions established by law, including in terms of types of activity suitable for the implementation of PPP projects.

Regional Law of the Leningrad region dated 25.11.2019 No. 89-oz “On measures of stimulation in the implementation of regional investment projects
in the territory of the Leningrad region and on amendments to certain legislative acts of the Leningrad region”, which:

establishes a reduced rate of corporate property tax;
establishes a reduced rate of corporate income tax.

These support measures are provided to organizations that meet the conditions established by law, including in terms of types of activity suitable for the implementation of PPP projects.

Regional Law of the Leningrad region dated 06.04.2020 No. 36-oz “On the application in the territory of the Leningrad region of the investment tax deduction for corporate income tax”, which establishes the right to apply in the territory of the Leningrad region the investment tax deduction for corporate income tax.

This support measure is provided to organizations that meet the conditions established by law, including in terms of types of activity suitable for the implementation of PPP projects.

Regional Law of the Leningrad region dated 03.02.2012 No. 1-oz “On the rate of corporate income tax for organizations registered
with tax authorities in the territory of Lodeynopolsky and Podporozhsky municipal districts”, which establishes a reduced rate of corporate income tax.

This support measure is provided to organizations that meet the conditions established by law, including in terms of types of activity suitable for the implementation of PPP projects. In addition, each concession agreement and resolutions of the Government of the Leningrad region on approval of procedures for providing budget investments may provide for support measures in terms of financing concession agreements.

Development of PPP in the Leningrad region

Regional level

The Ministry of Economic Development of the Russian Federation annually compiles a rating on the level of PPP development in the regions.

Information on initiated projects:

You can find complete information about planned (initiated), ongoing and completed PPP projects in the territory of the Leningrad region here.

At the regional level, 5 concession agreements and 1 PPP project have been concluded in Leningrad region in relation to the following projects:

Construction of a swimming pool in Gatchina Construction of a swimming pool in Sertolovo Creation of the Leningrad Regional Center for Medical Rehabilitation Reconstruction and major repair of the Ladoga water conduit Creation of a cultural and leisure center for youth work in the Leningrad region with recreational and sports and health facilities Creation and subsequent operation on a paid basis of a latitudinal high-speed highway in the Leningrad region Planned regional PPP projects (concession agreements)

Municipal level

A number of concession agreements have been concluded by municipalities of the Leningrad region.

Concession agreements of municipalities Municipal-private partnership agreements Planned municipal PPP projects (concession agreements)