Council for Investments puts forward new proposals to improve concession law
Press release, 23.04.2014
Moscow, April, 23, 2014 – Kirill Dmitriev, CEO of Russian Direct Investment Fund (RDIF) took part in a meeting of the Council for Investments under the Chairman of the State Duma of the Russian Federation. During the meeting, the Council members discussed measures to improve the legal framework for concession activity, namely the draft law “On amendments to the Federal law “On concession agreements” and certain regulations of the Russian Federation” (hereinafter, the Draft Law) approved by the State Duma last week in the first reading.
The Council members propose further refining the Draft Law and removing restrictions on additional income for concessionaires even in the case of government payments. The development of additional measures is also proposed to ensure ROI for concessionaires and remove the maximum 5-year extension restriction on the concession period.
The Council for Investments also recommended that the Draft Law encompass a set of norms to further increase the appeal of concession as a form of private public partnership. This includes rendering the typical norms of concession agreements optional, as well as providing land plots to concessionaires as part of the single tendering procedure and the opportunity to pledge their rights under the concession agreement.
The Council for Investments was established in 2012 under the Chairman of the State Duma of the Russian Federation to increase investment activity in the Russian economy. At its meetings, the Council develops recommendations on improving existing rules and regulations to stimulate investment.
Kirill Dmitriev, CEO of RDIF, said:
"We strive to make infrastructure projects more attractive for institutional investors. The fact that the Government has already accounted for our previous recommendations in the current version of the draft law is significant. It implies, for example, that “life cycle contracts” could be implemented beyond the sphere of road infrastructure in all other types of concession agreement, and also suggests that financing institutions might participate in concession agreements. Further work is still required in this area however, as infrastructure investors still face challenges with the current legislation."
Russian Direct Investment Fund (RDIF) was established in June 2011 to make equity investments primarily in Russia jointly with leading international financial and strategic investors. RDIF acts as a catalyst for direct investments into the Russian economy. RDIF management company is a 100% subsidiary of Vnesheconombank located in Moscow. Additional information is available at: rdif.ru.
For more information please contact:
Russian Direct Investment Fund
Director of Media Relations Department
Tel: +7 495 644 34 14, ext. 2141
Mobile: +7 964 726 17 73