16:39 EDB: International development banks increase finance for CIS projects by 130% in Q4 2016 (review)
13:02 The persistently low inflation rates and moderate dollarisation of the EAEU economies pave the way for further successful integration
Dmitry Pankin: EDB is interested in PPP projects
Eurasian Development Bank (EDB) is interested in public-private partnership (PPP) projects. The priority areas for such projects are road infrastructure and residential utilities. Dmitry Pankin, Chairman of the Management Board at EDB, stated this at the plenary session of the 4th Infrastructure Congress Russian PPP Week.
The head of EDB said that the Eurasian Economic Union (EAEU) countries, except for Armenia, had already devised legislative regulations necessary for such projects. Armenia, at the same time, has examples of successful concession agreements implemented within its general legal framework. Dmitry Pankin also said that Kazakhstan, despite its rather sophisticated legislation, did not have many PPP projects.
This suggests that a developed regulatory framework, even with the government’s indisputable importance to the creation of such a platform, is not the only and sufficient condition for increasing the private capital’s share in projects with co-investments from the state. The participants in the PPP market need to devise effective practical tools in order to promote such a co-investment mechanism.
The speaker emphasised that the evolution of risk distribution mechanisms in such projects with the development of the market was conducive to the advancement of the PPP sector. An example of such successful cooperation between public and private investors (including EDB) is the construction of the Western High Speed Diameter Road in Saint Petersburg, where the concession mechanism was applied based on the local legislative framework.
The 4th Infrastructure Congress Russian PPP Week is being held in Moscow from 28 to 31 March 2017.
Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
EDB Media Centre:
+7 (727) 244 05 45, ext. 6147 (Almaty)
+7 (495) 645 04 45, ext. 2724 (Moscow)
29 March, 2017