Public-Private Partnership (PPP)
A public-private partnership (PPP, private financial initiative – PFI) provides a special format by which infrastructural projects can be realised (mainly structured as ‘concession agreement’ or PPP/PFI agreements).
Under a public-private partnership public and private entities can consolidate their funds and investments and share the risks associated with the aim of achieving governmental projects and socially important objectives. The primary objective for implementation of such investment partnerships and projects is to be of benefit to the public by providing social projects and public infrastructure.
PPP has proven to be of considerable importance. Through the use of PPP, governmental budgets can be used more effectively by attracting private investment and businesses expertise and innovation to reduce the cost of public services for consumers and remove public authorities from being directly involved in the performance of the project; permitting it to focus on organisational and controlling functions.
Maxima Legal takes active part in the development of PPP regulation in Russia and CIS. Natalia Diatlova, partner and head of PPP practice in Maxima Legal, is an author of extensive amendments to the Russian PPP laws at both federal and regional levels. Natalia Diatlova defended her dissertation “Agreements in Public-Private Partnership: civil law aspects” at the Law Faculty of St Petersburg State University.
Our legal services for PPP projects include:
- developing optimal models for infrastructure projects, including through the use of public-private partnership;
- drafting documentation for public-private partnership projects for public entities;
- assisting with drafting bids and other documentation to take part in tenders for PPP projects;
- preparing concession agreements, lifecycle contracts and other agreements in the area of PPP, including direct agreements and agreements on joint activities;
- undertaking legal due diligence to identify the risks of a project and provide recommendations for their resolution;
- advising on corporate and tax structuring, including in respect of consortiums;
- advising on project financing and drafting the necessary documentation including security instruments;
- advising on matters relating to land plots and rights to property;
- resolving disputes arising from PPP projects.
