PPP projects are being actively implemented in Mordovia
Public-private partnership (PPP) is one of the key mechanisms for attracting investments in infrastructure and social projects. In Mordovia, this tool is actively used to modernize housing and communal services. Thanks to the effective interaction of government and business, the region is showing positive dynamics, rising in the ranking of subjects of the Russian Federation in terms of PPP development.
Tatiana Afonina, Deputy Head of the PPP and Administrative Work Department at Mordovia Development Corporation, told Rossiyskaya Gazeta about how this mechanism works in the region, what projects have already been implemented and what challenges the partnership participants face.
- Tatiana Vyacheslavovna, how is PPP developing in the republic today? What key projects are being implemented in this format?
- In Mordovia, PPP is an effective tool for attracting investments in infrastructure and social facilities. Housing and communal services projects are particularly actively developing. One of the largest is the municipal solid waste treatment complex, which not only solves environmental issues, but also creates new jobs. Business sees the potential of the republic and is ready to invest in long-term projects, and the authorities create all the conditions for this.
- By the end of 2024, Mordovia improved its position in the ranking of regions in terms of the level of PPP development. How was it achieved?
- Yes, we are up two places, and this is a natural result. One of the key factors is the accumulated experience of implementing PPP projects in previous years. We will work to ensure that we continue to grow in this ranking in the coming years.
- Which PPP tools are most in demand in the region?
- The legislation provides for about eight PPP models, and different ones are used in Mordovia, depending on the specifics of the project. Most often these are concession agreements. Mordovia Development Corporation helps businesses choose the optimal format, minimize risks and ensure the sustainability of projects.
- What successful examples of PPPs have already been implemented in the republic?
- One of the most significant is the concession in the field of heat supply in Saransk with PJSC T Plus for 99.9 million rubles. Due to this, the worn-out infrastructure is being upgraded, which will directly affect the quality of services for residents.
There are smaller projects, but no less important. For example, agreements have been concluded in the Torbeevsky urban settlement: with LLC “Energia” for 26.5 million rubles – reconstruction of heating systems and IP Luzgin A.G. for 3.4 million rubles - modernization of water supply. This proves that PPP is available not only to large cities, but also to small municipalities.
- How does Mordovia Development Corporation participate in the promotion of PPPs?
- We act as a single operator of such projects in the region: we help structure transactions, find investors, support agreements and monitor their execution. Our goal is to create transparent and mutually beneficial business conditions while ensuring the public interest.
In addition, we actively train government and business representatives: we hold seminars, involve federal experts, and act as speakers ourselves. This helps participants to better understand PPP mechanisms and implement projects more effectively.
- What challenges do PPP projects in Mordovia face?
- In the current economic conditions, PPP projects in Mordovia, as in other regions, do face a number of challenges. The main problem now is the high cost of borrowed resources due to the current key interest rate. This objectively increases the payback period for projects. However, we consider this situation not only a problem, but also a chance. Now is the right time to thoroughly prepare new PPP projects.
- Which industries are the most promising for PPPs in the coming years?
- In addition to housing and communal services and road infrastructure, the social sphere has great potential.
- What would you recommend to a business that is considering participating in a PPP?
To study legislation in depth, assess risks and consult with experts. Mordovia Development Corporation is ready to help at all stages – from the elaboration of an idea to implementation. The main thing is not to be afraid of dialogue with the authorities: we are interested in reliable partners and are open to cooperation.