Public private and municipal partnership. Services on accompaniment of public private and municipal partnership.
According to the Federal Law No. 224-FL from July 13, 2015 “On public private and municipal partnership in the Russian Federation and Amendments to Certain Legislative Acts of the Russian Federation” that came into force on January 1, 2016, the participants of the Russian real estate market have the opportunity to invest in the construction of various infrastructure facilities. Every year, the legal structure of Public private and municipal partnership is only gaining popularity, but in broad public, it is still largely the “unexplored” area. In article 3 of the Law public private and municipal partnership is established that private and municipal partnership is legally formalized for a certain period and based on the pooling of resources, the distribution of risks, cooperation of a public partner, on the one hand, and a private partner, on the other hand. It is based on the public private and municipal partnership agreements that are concluded according to the legislation for private investments and to provide the goods, works, services, and improvement to the state authorities and local governments.
Depending on the level at which this partnership is carried out (municipal or state), public partners can be, respectively, local governments or state authorities. The Law on public private and municipal partnership establishes legal entities as possible private partners that are outside the control of the public authorities. Both a public and a private partner have the right to initiate a public private and municipal partnership. In the second case, the private partner develops a proposal for the implementation of the state (municipal) private partnership project, which must be sent to the public partner. Requirements for the form and content of such proposals are established by Decree of the Government of the Russian Federation from December 19, 2015 № 1386, and the rules for its consideration by a potential public partner that are established by Decree of the Government of the Russian Federation from December 19, 2015 № 1388. Also, according to the paragraph 2 of article 8 of the Law on public private and municipal partnership, the proposal must also be supported with a bank guarantee in the amount of at least 5% of the amount of proposed project financing that is specified in the proposal. To consider the proposal of a potential private partner, a potential public partner has no more than 90 days. After this period, the potential public partner should decide either to send this proposal to the authorized body in order to assess its effectiveness and determine the comparative advantage or about the impossibility of the project.
In turn, the authorized body also within 90 days should give a positive or negative opinion on the proposal of the private partner, after that it sends such an opinion to the public partner and the author of the proposal. And also it should publish information on the results of consideration of the proposal on its official website on the Internet. The criteria that the authorized body uses when considering an investor's proposal are regulated by Order of the Ministry of Economic Development of the Russian Federation from November 30, 2015, № 894. So, the total period of approval of the private partner's proposal for the implementation of the project, according to the legislation, should not be more than 6 months. If a positive conclusion is received, a decision is made on the implementation of the relevant type of partnership. Based on the decision, a tender should be prepared and held for the right to conclude an agreement on the implementation of on public private and municipal partnership. Information about it should be published in a unified information system on the Internet. Based on the results of the competition (or, for example, in the absence of at least one application corresponding to requirements), the winner is determined, who acquires the status of a private partner, that is, an agreement on state (municipal) partnership is concluded with him. This agreement, in fact, will be the basis for the investor to build real estate and other infrastructure elements, as well as subsequently use them according to the terms of the agreement.
Services on accompaniment of public private and municipal partnership by the specialists of the Tsentralny Okrug Law FIrm give many opportunities:
- it saves your time, and it needs minimal involvement of the client in the procedure;
- there is no need to independently prepare the entire package of documents;
- significant minimization of legal risks;
- interaction with authorized bodies on issues of state (municipal) private partnership.
How can you contact us
You can call us + 7 (473) 20-30-161 or send a request using the feedback form on our website
Our e-mail: info@centraldep.ru
Office in Voronezh: lane Detskiy, b. 24, of. 44
Office in Moscow: Holodilny building 3, construction 8, of. 8304, phone number: +7 (495) 118-27-79.
Author is Alexander Tarkhnov