***02.02.2011

New public-private partnership (PPP) opportunities for municipalities

Together with the Rostov Region Council of Municipal Districts, Center-Invest Bank held a seminar entitled “PPP for Municipal Districts”.

Drawing on analysis of international experience of PPP, Center-Invest Bank presented a model for the implementation of PPP in southern Russia. The seminar attendees included German specialists in water supply, energy efficiency, and infrastructure design (Gauff GmbH & Co. Engineering KG).

Center-Invest Bank has considerable experience of financing municipal and industrial energy efficiency programmes and programmes to upgrade municipal infrastructure. We are already implementing a number of PPP projects in the housing and communal services sectors. To date, Center-Invest Bank has invested RUR2.3bn in the introduction of energy efficiency technologies in southern Russia.

What is particularly striking is that everyone needs PPP projects, but not everyone is prepared to pay for them,” says Center-Invest Bank President and Chairman Dr Vasily Vysokov. “Through our cooperation with international financial institutions, Center-Invest Bank has gained experience of lending to PPP projects, as well as access to long-term resources to finance PPP.”

During the seminar, representatives of the Rostov Region Administration and Legislative Assembly expressed their approval of Center-Invest Bank’s proposed PPP model for the region. The seminar participants had the opportunity to analyse potential municipal projects and the proposed financing arrangements for these projects.