ECONOMY AND RISK ALLOCATION IN ANY CONCESSION SHOULD BE BALANCED
November 19, 2019, Infralex Partner Maxim Chernihovsky at the invitation of the Department of Public-Private Partnership of the Financial University under the Government of the Russian Federation delivered a lecture "Peculiarities of implementation of concession projects in the field of railway construction" within the framework of the Course of advanced training "Management of public-private partnership projects in the regions of the Russian Federation".
Maxim Chernigovsky shared his experience in supporting public-private partnership projects on the example of railway construction. Infralex Partner revealed the peculiarities of PPP projects in railway transport and explained how the experience of railway concessions can be used in PPP projects in other areas of the economy. In addition, Maxim gave the participants practical recommendations for the development of mutually beneficial concession models.
During the speech Maxim Chernigovsky stressed the fact that investments in the development of public infrastructure are mutually beneficial projects for the private and public sector. It is often beneficial for businesses to invest in public infrastructure development because, in the end, they reduce their future costs, while the public sector receives advanced infrastructure through private investment.
As specific recommendations, the Infralex Partner noted the following:
- The economy and risk allocation in any concession should be balanced, not placed on the shoulders of one of the parties, putting it at a known disadvantage;
- Balancing the economy of the concession agreement does not always mean income from the concessionaire 's activities;
- When developing the draft concession agreement, it is necessary to take into account the legal regime of the concessionaire 's forthcoming activities, including tariff regulation.
- If concession initiative participants or developers have doubts about structuring the concession transaction - it makes sense to ask external experts for additional opinion. This will not only solve the difficulties that have arisen, but will also save money and time at the stage of planning the concession transaction.
Maxim Chernigovsky is the permanent speaker of the course of advanced training "Management of public-private partnership projects in the regions of the Russian Federation" of the Financial University under the Government of the Russian Federation. The statements of Infralex Partner receive the highest ratings of the participants of the Course and the teaching staff of the Financial Academy under the Government of the Russian Federation.
Infrastructure. Transport. PPP. practice of Infralex, the adviser and co-head of which is Maxim Chernigovsky, is recognized by the professional community, as well as Russian and international rating agencies as one of the best on the market. Every year, practice lawyers implement dozens of projects in the field of improving legislation, developing, supporting and closing PPP projects in various sectors of the economy. Partners of Practice: Maxim Chernigovsy and Dmitry Ivanov are recognized by international rating agencies Legal500 and IFLR1000.