Representatives of IDGC of Centre participated in the third infrastructure congress "Russian Week of public-private partnership (PPP)"

Representatives of IDGC of Centre participated in the third infrastructure congress "Russian Week of public-private partnership (PPP)". As part of the open discussion "PPP in the power industry" the report "About the first experience of implementing public-private partnership" was made by Head of Property Management Department of IDGC of Centre Dmitry Meneylyuk.

The open discussion "PPP in the power industry" was devoted to topical issues of attracting investments to construct and modernize power plants and electrical grids using the mechanism of state-private partnership.

In his speech Dmitry Meneylyuk described the experience of IDGC of Centre for the implementation of the first grid project on the public-private partnership principles. In 2015 the administration of the Tambov region and IDGC of Centre signed a concession agreement for electrification of sites of LLC "Tambov turkey" and OJSC "Tokarevskaya Poultry Plant". The project aims to create a grid infrastructure for the largest in the Central Federal District new enterprises in growing and processing of poultry meat. The enterprises will create about 2,700 jobs. The agreement is for a 20-year period and allows to attract investment to the construction and operation of power grid facilities of the Tambov region in the amount of 1.2 bln rubles.

The representative of IDGC of Centre elaborated on the specifics of the preparation and implementation of the pilot PPP project, including study of the project organizational structure and capital structure, key parametres for its implementation. Terms and conditions of the concession agreement are innovative to the electric grid complex and can increase the availability of new electric power for consumers while reducing the risks of the project implementation. As a result of the agreement execution the electricity consumption growth in the Tambov region will be about 160 mln kW.

In conclusion, Dmitry Meneylyuk noted that the dissemination of the experience gained in the electric grid complex in other Russian regions through the involvement of non-tariff investment with the mechanism of public-private partnership will allow to realize the task of increasing the availability of electric power to consumers, development and economic growth.

The Russian PPP Week is the largest in Russia and the CIS event dedicated to the issues of attracting investments in the development of federal and regional infrastructure. The event covers all major infrastructure sectors – transport, housing, energy and social sector. Among the key topics were: the entry into force of the federal law on PPPs, stimulation of the use of PPPs in the Russian regions, possible funding mechanisms, ensuring the quality of project preparation, assessment of budgetary efficiency and comparative advantages of PPP projects, measures to support private investors.

The event was organized by the Centre of PPP development with the participation of relevant federal ministries, the Chamber of Commerce, Business Russia and the Agency for Strategic Initiatives. Every year more than 1,500 people from 70 regions of Russian Federation participate in the PPP Week.