Concession

Concession is a PPP form when a city gets a functional object with ownership to it, and business - income from the operation of this object for a long period.
It can be an object built from scratch or a project for the reconstruction of an existing one

Moscow has already signed concession agreements in healthcare, road construction, transport and housing and communal services – in areas traditionally financed from the budget.
WHAT it GIVES
  • Income from the operation of the facility for a long time.
  • The project can receive the status of an investment priority project, which will give the investor benefits in taxes and land rent.
WHO CAN BECOME A CONCESSIONER
  • Individual entrepreneur.
  • Legal entity - Russian or foreign.
  • Consolidation of several legal entities.
  • Legal entities with a share in the authorized capital of the Russian Federation or a constituent entity of the Russian Federation.
N.b
To be awarded the IPP, the amount of the concession investment must be at least 580 million rubles.
HOW TO BECOME A CONCESSIONER
General requirements:
  • not be in the process of liquidation and bankruptcy;
  • not to suspend activities on the day of submission of the application for participation in the competition;
  • absence of debts on taxes and other obligatory payments;
  • availability of the necessary licenses to carry out certain types of activities.

Qualification requirements:
  • availability of funds or the possibility of obtaining them in the required amount;
  • experience in the creation of similar objects;
  • experience in implementing concessions or PPP projects in relation to similar facilities.

A bank guarantee must be provided before concluding a concession.

ESTABLISHMENT OR RECONSTRUCTION OF PROPERTY IS POSSIBLE BOTH AT THE EXPENSE OF A PRIVATE SIDE, AND WITH ATTRACTION OF BUDGETARY FINANCING
METHODS FOR CONCLUDING A CONCESSION
1. On the initiative of the public side:

  • A tender for the conclusion of the concession is announced.
  • The first stage of the competition - accepting applications for participation in the competition and checking the applicant's compliance with the requirements.
  • The second stage - consideration of the proposal of the bidders according to the criteria.

2. On the initiative of the private side:

  • The investor prepares proposals for the implementation of the project, having previously discussed the conditions with the public side.
  • A private concession initiative undergoes competitive procedures - is placed in open sources in order to receive applications from other persons who are also ready to implement the project.
  • In the absence of applications from other persons, the agreement is concluded with the initiator without a tender.
  • If there are other applications, a competition is held.
List of documents
For the tenders
The list of documents and requirements is determined by the tender documentation..

For the private initiative
Proposal to conclude a concession agreement (the form was approved by Decree of the Government of the Russian Federation No. 300 dated March 31, 2015).
Term
The term of the tenders is from 6 months.
Consideration of a private concession initiative – from 4 months.
The terms of the concession depend on the financial and economic indicators of the project, the payback period. There is no minimum term for a concession agreement.
WHAT CONCESSIONS ALREADY EXIST
Health care

Investor – European Medical Center.
The goal is to create the Moscow International Outpatient Oncological Center and the Center for Endovascular Surgery.
Amount of investments – over 6 billion rubles.
The term of the agreement is 49 years.

Social service

Investor – Senior Group PM.
Purpose – creation and further operation of a geriatric center (boarding house for the elderly). The center will be equipped with everything necessary, taking into account the peculiarities of life, health and needs of elderly people.
Amount of investments – 450 million rubles.
The term of the agreement is 20 years.

Road construction

Investor – New Concession Company JSC (part of the Lider MC group).
The goal is the construction of the Northern alternate of Kutuzovsky Prospekt, which will reduce the load on Kutuzovsky Prospekt, a section of Mozhaiskoe Shosse and improve the transport situation in the area of MIBC Moscow-City and ZAO Moscow.
Amount of investments – over 50 billion rubles.
The term of the agreement is 40 years.

Transport

Investor – Moscow Cableways.
The goal is the creation and subsequent operation of the cableway between the Skhodnenskaya and Rechnoy Vokzal metro stations, which will reduce the load on roads and public transport in the adjacent areas.
Amount of investments – over 3 billion rubles.
The term of the agreement is 25 years.

Housing and communal services

Investor – Grintech.
The goal is the construction of two modern plants for the environmentally friendly disposal of sludge from wastewater treatment. In addition to construction, the investor will also undertake thermal treatment (drying) and subsequent disposal of the sludge: the waste will be supplied to cement plants for use as an inexpensive and safe solid biofuel.
Amount of investments – 27 billion rubles.
The term of the agreement is 20.5 years.
Unified public procurement information system
Moscow investment portal

CONTACTs:
When holding tenders initiated by a public side: to the Moscow City Department for Competition Policy

When submitting a private initiative: to the Department of Investment and Industrial Policy of Moscow, as well as to the Moscow City Investment Agency
Contacts:

When holding tenders initiated by a public side: to the Moscow City Department for Competition Policy

When submitting a private initiative: to the Department of Investment and Industrial Policy of Moscow, as well as to the Moscow City Investment Agency
E-mail: pressprom@mos.ru
Audience: 16+