Today in Russian legal practice some problems with the cooperation of the risks of government and business are noticed, particularly in the implementation of joint public-private partnership (PPP). Faced with the need for investment (the volume of which amounts to billions of dollars in the area of transport infrastructure and the provision of utility services), state and municipal institutions are noticeably intensifying efforts to develop public-private partnerships (PPPs).
However, expectations of private investors, including foreign ones, run into the obvious gaps of legislation on PPPs. Disadvantages of the Federal Law on the Constitutional Court in 2005, the restrictions arising from other legal acts, including those n the sphere of national security, as well as the inability to appeal to international courts – that is, perhaps, the most pressing issues of today, which illustrate the main problems in a comprehensive legal regulation of PPPs.
Balancing of the partnership on the verge of two fundamental interests: the fulfillment of social obligations and commitment to the sustainability of profits – is associated with significant risks for both sides. The risk of failure by parties of commitments, including the violation of the terms of funding and problems with long-term lending to projects, inadequate budget legislation and the formation mechanism of targeted programs – administrative, economic and legal aspects of PPP suggest the presence of public and private partners, a clear agreement, conclusion of which should preceded by negotiations of the parties.
The lawyers of Pronto Company have considerable experience in tracking and resolving of the contentious issues related to the implementation of PPP projects: from corporate and tax structuring to the construction and financing. Risk management in PPP projects is rather difficult and challenging issue. And because the interests of the state and the business can not just be different, but to be inconsistent, we, in our turn, pay a great attention to choosing the right form of PPP contract to suit the individual needs of the client and the project with a clear definition of responsibilities of the parties, risk sharing, taking into account the differences in goals and mutual guarantees.
In order to develop the necessary legal framework with clear mechanisms for its implementation, as well as the professional community in the implementation of PPP projects we support a variety of public and private initiatives and advise the parties on many important regional and federal projects implemented on the basis of PPP. The main landmark of practice "Public-Private Partnership (PPP). Infrastructure projects "is a creation, especially at the regional level of non-discriminatory conditions to ensure the principle of equality of participants in the partnership.