Irina Kiviko: Economic development is a team sport

Crimea Development Corporation
23 November 2020

Much attention is paid to the implementation of investment policy in the region. The economic well-being and development of the Crimea directly depends on external money injections and the growth of entrepreneurs within the Republic. Irina Kiviko, Deputy Chairman of the Council of Ministers of the Republic of Crimea and Minister of Finance of the Republic of Crimea, told "Invest in Crimea" magazine what other tools are available to investors in the region.

 

PPP mechanisms and concessions

Crimea has become a point of attraction for investors, and I am glad that there are more and more interesting projects. And the Government, for its part, contributes to the implementation of projects in every possible way. One of these mechanisms has been Public-Private Partnership and concession. Currently, one concession agreement has been concluded in relation to photo and video recording systems for traffic violations, and a second concession agreement in this area is in the process of being concluded. Also, a quasi-PPP project is being implemented on the territory of the Republic – an investment agreement to create an automated fare payment system for regular transport routes in the territory of the Republic of Crimea. We are currently working on projects in the field of housing and communal services.

"On an ongoing basis, on behalf of the Head of the Republic of Crimea, we are working to improve the conditions for attracting potential investors. I would like to note that there is an Interdepartmental coordination Council for PPP development in Crimea, created on the initiative of the Ministry of Economic development of the Republic of Crimea and Crimea Development Corporation. The Council coordinates the activities of the Executive authorities of the Crimea on the formation and implementation of state policy in the field of PPP development on the territory of the Republic", said Irina Kiviko.

The Deputy Prime Minister also noted that the Concept of PPP development until 2025 has been approved, and the PPP development Plan in the Republic of Crimea for 2020-2021 is being implemented. PPP Project office operates on the basis of Crimea Development Corporation. In addition, a list of objects has been formed for which projects can be implemented using PPP mechanisms.

"Due to these measures, the Republic of Crimea took the third place in the Southern Federal District last year in the rating of subjects of the Russian Federation in terms of the level of development of Public-Private Partnership. Analyzing the appeals of potential investors, we can say that the business is ready to invest, provided that the state is financially involved in the project. There are no special benefits for PPP projects in Crimea, but a Free Economic Zone with a number of benefits and preferences, including social contributions, operates throughout the Peninsula. Any investor can use them, having received the status of a FEZ resident", said Irina Kiviko.

Every year, there are more and more projects and initiatives in Russia, which creates conditions for working with the legislative framework at the Federal level. The Ministry of Economic development of the Russian Federation is currently working on the preparation of a draft law on amendments to legislation in the field of Public-Private Partnership.

"The new amendments are aimed at improving competitive procedures, stimulating pre-project preparation of the project within the framework of a private initiative, determining the forms of state participation in project financing, and allowing the state to fully reimburse the costs of private partners for the creation and operation of facilities. The adoption of the bill will minimize the risks of challenging the concluded concession agreements and PPP/PIL agreements, which will increase the degree of protection of the interests of private investors in the implementation of PPP projects", summed up Irina Kiviko.

 

The new issue of "Invest in Crimea" magazine is available at the link: https://ru.calameo.com/read/006080324c690ab7b312e

Information: 

According to the results of 2019, the Republic of Crimea took 44th place (+21 positions) in the Rating of subjects of the Russian Federation in terms of the level of Public-Private Partnership development. Since 2015, when the Republic was first marked in the ranking at 77th place, the growth has been 33 positions.

 

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