Press centre News

On September 18, 2014, the Federal Road Agency (Rosavrodor) Board met in Sochi before the Sochi-2014 International Investment Forum. The VEGAS LEX experts attended the meeting.

The event included a series of roundtables on public-private partnership projects in Russian regions and on changes to the law on public procurement contracts. The meetings were attended by Deputy Transport Minister Oleg Belozyorov, State Duma member Alexander Vasilyev, Rosavtodor head Roman Starovoit, Senior Vice President of VTB Bank Yury Molchanov, Alexei Chichkanov, head of the PPP Center at Gazprombank, and representatives of other concerned regional agencies responsible for road facilities, regional leaders and heads of business associations.

Albert Eganyan, Chairman of VL Board of Partners, spoke at the roundtable on legal and financial aspects of implementing PPP projects in Russian regions.

One of the key purposes of the event was to discuss problems that arise at the start of PPP projects in Russian regions, and proposals for dealing with these problems. The round table participants discussed the possibility of implementing investment projects co-financed by government agencies and private capital, and problems hampering the materialization of Russia’s Longterm Socio-Economic Development Concept until 2020.

Head of PPP and Infrastructure Practice at VEGAS LEX, spoke at the round table «The Federal Law on the Public Procurement Contracts System: Application, Issues and Prospects».

The participants shared their views on the subject, outlined the demarcation line between the law on concessions and the public procurement contracts law when applied to life cycle contracts; they discussed the formula for initial ceiling price of life cycle contracts, the application sphere for bank guarantees issued by the guarantor to secure the fulfillment of state contracts during the guarantee period, and ways to expand SME access to public procurement contracts in the sphere of road construction and maintenance.

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For more information on VEGAS LEX PPP and infrastructure projects, please go here.