The Public Private Partnership

In cases where the initiator of the project is a private investor, he develops a proposal for the implementation of the project and sends it to the public partner for consideration of the proposal for:compliance with the principles of PPP;the possibility of exploitation, and / or technical use, and / or transfer to private ownership of the object of the agreement;the possibility of concluding a PPP agreement in relation to the object;the presence of already concluded agreements with respect to the object;the availability of funds for the implementation of the project (in cases when the implementation of the project requires the allocation of funds from the budgets of the budgetary system of the Russian Federation);whether the public partner has ownership of the object;the existence of third party rights in relation to the object;if there is a need for reconstruction or creation of an object;completeness and reliability of the data contained in the proposal for the implementation of the project;the existence of grounds for making a decision on the impossibility of implementing the project, established in Federal Law 224-FZ;expediency of negotiations with the initiator of the project.Within a period not exceeding 90 days, the public partner considers the proposal for the implementation of the project and decides to send the proposal to the authorized body. When deciding on the implementation of the project, the form of public-private partnership is determined.If the proposal for the implementation of the project comes from a public partner, he sends it to the authorized body for the evaluation of the project. The authorized body reviews the project in order to assess its effectiveness and determine its comparative advantage. This assessment is carried out by the federal authorized body of the Ministry of Economic Development of Russia in relation to federal-level projects, or an authorized body of a constituent entity of the Russian Federation in relation to regional projects.Evaluation of the project's effectiveness includes two criteria:financial efficiency of the project;socio-economic effect of the project.If the project is recognized as effective, its comparative advantage is determined. During this stage, the authorized body has the right to attract consultants, experts and form specialized commissions and working groups.If there is a positive opinion of the authorized body, the decision on the implementation of the project is made by the Government of the Russian Federation or the supreme executive body of the constituent entity of the Russian Federation. On the basis of this decision, the public partner ensures the organization and conduct of tender procedures in order to select a private partner.When the initiator of the proposal for the implementation of the project was a public partner, the tender procedures begin with the announcement of the tender, then applications for participation in the tender are accepted and a preliminary selection takes place. Further, the participants submit their proposals, which are submitted for consideration and evaluation, based on the results of which the winner of the competition is determined, with which they conclude an agreement on the implementation of a public-private partnership project.If the proposal for the implementation of the project came from a private investor, tender procedures proceed differently. The public partner places a proposal for a project on the official website, in the absence of other applications, after 45 days the competition ends and a decision is made to conclude an agreement with the project initiator without competitive procedures. If there are applications from other persons, the competition is held according to the standard algorithm.If within the framework of the project it is necessary to conclude an agreement with two or more public partners, it is possible to conduct a joint tender.At the stage of development of the financial and legal scheme of public-private partnership, a project risk assessment is provided. Risks in the implementation of PPP projects are understood as the occurrence of potential events that entail financial losses or additional costs for partners, shortfall in predicted income, an increase in project implementation time, the onset of these risks can occur due to the actions of the interaction participants themselves, and due to special circumstances. Special circumstances include those situations, the occurrence of which does not depend on the actions or inaction of the investor and has a number of legal consequences for the parties [16]. The list of these special circumstances may differ depending on the scope and conditions of the project. Thecircumstancecanbe attributed to special,A specific circumstance is indicated in the agreement as special;The occurrence of this circumstance is not related to the actions of the investor or the persons involved;There are some implications for the investor:a private partner cannot fully or within a specified period of time fulfill a number of obligations imposed on him by agreement;the occurrence of a special circumstance entails the need for additional costs on the part of the investor. The institution of special circumstances is mainly aimed at ensuring the elimination of negative consequences for the private investor. The consequences of the occurrence of a special circumstance can be fixed in the agreement in the following form:in cases where a party to the agreement cannot fulfill its obligations in full and within the prescribed period due to special circumstances, this period shall be extended by the period of delay;violation of the obligations of the agreement by one party due to the occurrence of special circumstances does not entail the accrual of a penalty, fine or forfeit, and does not require compensation for losses to the other party; the party has the right to demand the termination of the agreement early, if this condition is enshrined in the agreement.Key examples of special circumstances are:situations related to the lease agreement (violation of terms, early termination);seizure of a land plot intended for the implementation of the project in favor of state needs;detection of archaeological objects, engineering networks, hazardous substances, communication networks on a land plot.The exact list of special circumstances depends on the conditions of each specific project and the scope of its implementation. An important issue is the distribution of risks between the state and a private investor, which reduces the likelihood of premature closure of the project and establishes the obligations of the parties and the course of action when these risks arise. Risks are distributed according to the established rule, according to which the risks are imposed on the side of the interaction that will most successfully cope with them. Thus, the risks associated with the activities of a private partner are assigned to a private investor, and risks in the sphere of state responsibility are assigned to a public partner. A mandatory clause of the agreement is the structure of risks, their volume and distribution. The minimum list of risks to be reflected in the agreement can be divided into five types:Design and preparatory risks, this list should include:provisionoflandplots;provision of engineering communications;preparation of land plots;failure to design an object;disruption of the preparatory measures.Risks of object creation, which are:elimination of the consequences of actions of third parties / natural disasters / environmental consequences;eliminationofnaturaldisasters;missed deadlines for the creation of an object or its commissioning;an increase in the costs of creation due to the growth of exchange rates / the rate of inflation / growth of interest on debt.Risks of object operation, which are expressed in an increase in the cost of operating property transferred to a public entity, an increase in costs due to exchange rates, the rate of inflation, an increase in interest on debt, an increase in taxes;Incomerisks:shortage of payments providing a guarantee of minimum profitability;a drop in revenue due to a decrease in the volume of services provided, a decrease in tariffs for the provision of services and non-payments from consumers of services;Otherrisks:termination of the agreement due to the fault of a private or public partner;loss of the object of the agreement;forcemajeureother risks.At the stage of project development, a risk matrix is ​​built, which includes the risks listed above, as well as the person who is responsible for such a risk (public or private partner), possible economic consequences and methods of mitigating the consequences of the risks.A public-private partnership project can be initiated by both public and private parties. Project implementation consists of several stages: development and review of the project; project evaluation; making a decision on the implementation of the project; holding a competition; conclusion of an agreement. As a result of passing these stages, the significance of the project is determined, its effectiveness is assessed, the form of project implementation is chosen, and risks are also distributed between the public partner and the private investor. Next, the object of the agreement is created and operated by a private partner, during which the state exercises control and monitoring.CONCLUSIONPublic-private partnership is a mechanism of cooperation between public authorities and business, which helps to attract private investment in infrastructure projects, increase the investment attractiveness of regions, reduce budget costs, involves the creation of new jobs, an increase in tax revenues to budgets of various levels, the introduction of technical innovations ... Methods were studied to assess the effect of the implementation of public-private partnership projects used in Russian and foreign practice. In Russia, by 2018, agreements were signed on the implementation of 2,980 public-private partnership projects, while the total investment amounted to more than 2.6 trillion rubles, of which more than 30% were invested by the public sector, but, in comparison with 2017, the share government financial commitments to PPP projects declined. This observation allows us to say about a decrease in the role of public investment in PPP projects, which may be due to the development of this mechanism in the country, the accumulation of certain experience and an increase in the confidence of private business in cooperation with authorities.Summarizing all the indicators and possibilities of public-private partnership, Firstly, public-private partnership is one of the mechanisms of a mixed economy that allows developing relations between business and the state; secondly, it is the state's ability to find a source of budget revenues, and the private sector has the ability to own and dispose of state and municipal assets, as well as the possibility of obtaining various state privileges. Third, combining the efforts of the state and private entrepreneurship within the framework of specific projects forms their additional competitive advantages. And finally, it is a successful mechanism for finding economic and social consensus, the introduction of new developments and technologies,Public-private partnership in the modern world with competent and rational behavior is a mechanism that can become the basis for the creation of high-tech corporate structures designed to ensure the orientation of business and the state towardssolving problems related to the withdrawal of the real sector of the economy from the financial crisis.REFERENCESBalatsky E.V. Elements of the economy of the public sector / M .: Capital of the country. - 2013 .-- S. 159.Civil Code of the Russian Federation. Part 1 of November 30, 1994 No. 51-FZ / Collected Legislation of the Russian Federation. 1994.[Electronic resource] - Access mode: http://www.consultant.ru/ (date of access 05/18/19)Pavlova M.S., Alekseeva O.L., Talanova N.V. 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