The issue of public-private partnership is one of the popular trends of modern life in Russia. Interest in the issue is constantly fuelled by the economic situation in the country.
However, there is also “level 3 group”, which is an encouraging fact. And although only two regions out of 20 were included in this group, these regions are capable of finding investors.
The responses to our enquiries were given immediately, personal meetings with representatives of the region were organized to clarify details, PPP-projects were presented. And those projects have been developed with regard to both the wishes of the region and the investor’s position.
The task of searching for the investment attractiveness factor in the project is not just the investor’s task. The region interested in attracting financing actively engages in solving the task. With such partners, it is possible to communicate in the same language. The project of public-private partnership ceases being something unique and unknown, but becomes one of a range of viable opportunities for investment. And despite its specific nature, PPP may be considered and compared with other investment opportunities.
Thus, our “research” helped to discover several problems. The first of them is absence of interest on the part of many regional representatives in any actions aimed at attracting investments. Naturally, there are ways to resolve the situation.
If the discussion of projects is started on the level of the governor or his deputies, it is possible to procure leave, license and overall support from junior officials. It is, probably, possible to apply to every institution. We could call, demand meetings, and thus obtain information. But this is an isolated solution. It could lead to the implementation of one or even several PPP-projects, but they will represent isolated cases, not the result of a systematic effort.
The second problem is that projects are suggested from the point of view of the region, and the burden of finding the investment attractiveness in the project is placed on the investors’ shoulders. The problem is that the existing profile of PPP-projects, their profitability and level of investor protection places officials in the position of sellers that need to attract buyers, and not vice versa.
Naturally there will be investment even in this situation. If the investor is interested in, for example, deposits in the territory of any particular region, the investor will come. But in this case, investment will cover only those areas which are of interest to the investor, while the major part of PPP-projects won’t ever be realized.