21.11.2023
Measures to support public-private partnership projects were discussed at the Yugra Economic Forum taking place in Khanty-Mansiysk. The event is attended by the head of VIS Group’s investment division Natalia Reznichenko. The Forum is being held for the first time with the support of the Government of the Khanty-Mansiysk Autonomous District - Yugra.
As part of the panel discussion “In search of PPP support. How do regions attract support measures and preferential financing?” Deputy Governor of the Khanty-Mansiysk Autonomous District – Yugra, Director of the Department of Economic Development Sergei Afanasyev cited as an example a PPP project to create a perinatal center in Surgut, implemented by VIS Group. The facility was built in 2021, its technical operation is carried out by one of the holding’s companies.
“Next year, OOO VIS Infrastructure will transfer to the district’s ownership a perinatal center built under a PPP agreement. This is a huge perinatal center, I’m not afraid of this word - the best, the most modern and in many other ways “the very best,” shared Sergei Afanasyev. “From the viewpoint of projects that are on everyone’s lips in terms of completion of construction and functional operation, this is the perfect example of how the state and business can come to an agreement.”
The discussion participants deliberated possible measures of government support for PPP projects and concessions in the context of an increased interest rate, which has now become a barrier to the launch of new investment initiatives. Natalia Reznichenko shared VIS Group’s experience in implementing complex concession and PPP projects and explained how the holding manages to administer financial risks in long-term projects, among other things.
“This is a matter of team qualification and work on structuring concession and PPP agreements. At different times VIS Group faced increases in interest rates, and each time it took painstaking efforts to use different financial instruments in order to preserve and implement the project,” said Natalia Reznichenko. “We use both government support measures, including subsidies, and refinance project costs by issuing securities upon completion of the construction stage. Our portfolio includes the first bonds in Russia for a non-concession PPP project in Yamal and the first social bonds for a project in Yakutia.”
The head of the investment division also shared VIS Group’s experience in the commercial and financial closure of projects that concurrently include the design and construction stages. This approach makes it possible to provide credit financing, while simultaneously eliminating the time gap between paperwork and the start of construction and guaranteeing financial flows throughout the entire life cycle of the project. The experts present confirmed the effectiveness of this approach.
Over a thousand government officials, including the federal Ministry of Economic Development and the Ministry of Industry and Trade, heads of large investment and industrial companies, and experts in the field of economics and finance took part in the first Yugra Economic Forum. Delegates from different Russian regions discussed attracting investments, developing social and industrial infrastructure, and business support measures in round tables and panel discussions.
“The perfect example of how the state and business can come to an agreement” is how the Vice-Governor of Yugra described VIS Group’s PPP project at the Yugra Economic Forum
As part of the panel discussion “In search of PPP support. How do regions attract support measures and preferential financing?” Deputy Governor of the Khanty-Mansiysk Autonomous District – Yugra, Director of the Department of Economic Development Sergei Afanasyev cited as an example a PPP project to create a perinatal center in Surgut, implemented by VIS Group. The facility was built in 2021, its technical operation is carried out by one of the holding’s companies.
“Next year, OOO VIS Infrastructure will transfer to the district’s ownership a perinatal center built under a PPP agreement. This is a huge perinatal center, I’m not afraid of this word - the best, the most modern and in many other ways “the very best,” shared Sergei Afanasyev. “From the viewpoint of projects that are on everyone’s lips in terms of completion of construction and functional operation, this is the perfect example of how the state and business can come to an agreement.”
The discussion participants deliberated possible measures of government support for PPP projects and concessions in the context of an increased interest rate, which has now become a barrier to the launch of new investment initiatives. Natalia Reznichenko shared VIS Group’s experience in implementing complex concession and PPP projects and explained how the holding manages to administer financial risks in long-term projects, among other things.
“This is a matter of team qualification and work on structuring concession and PPP agreements. At different times VIS Group faced increases in interest rates, and each time it took painstaking efforts to use different financial instruments in order to preserve and implement the project,” said Natalia Reznichenko. “We use both government support measures, including subsidies, and refinance project costs by issuing securities upon completion of the construction stage. Our portfolio includes the first bonds in Russia for a non-concession PPP project in Yamal and the first social bonds for a project in Yakutia.”
The head of the investment division also shared VIS Group’s experience in the commercial and financial closure of projects that concurrently include the design and construction stages. This approach makes it possible to provide credit financing, while simultaneously eliminating the time gap between paperwork and the start of construction and guaranteeing financial flows throughout the entire life cycle of the project. The experts present confirmed the effectiveness of this approach.
Over a thousand government officials, including the federal Ministry of Economic Development and the Ministry of Industry and Trade, heads of large investment and industrial companies, and experts in the field of economics and finance took part in the first Yugra Economic Forum. Delegates from different Russian regions discussed attracting investments, developing social and industrial infrastructure, and business support measures in round tables and panel discussions.