The public-private partnership (PPP) market begins to recover after the failure of 2020, according to the analytical review of the National PPP Center (part of the VEB.RF group). At the beginning of this year, the growth rates of investments (most of which are private) in infrastructure projects were still low. Starting from the second quarter, their gradual growth has been observed. In the most disastrous months (March-August 2020), only 107 billion rubles were attracted; in 2021, over the same period, investments increased to 116 billion rubles, by 8%.
In January-August of this year, financing of PPP projects amounted to 120 billion rubles. This is lower than last year’s 372 billion rubles, but of this amount, the bulk – 265 billion rubles – fell on the pre-pandemic January and February. “Despite the fact that it is too early to talk about the recovery of the PPP market to pre-crisis indicators, the inflow of investments in the second quarter indicates a possible stabilization of the market by the end of 2021,” the center analysts believe. The total volume of the PPP market is estimated at 4.7 trillion rubles, of which 3.4 trillion rubles. accounted for by private investments.
The number of projects that have undergone commercial closure remains approximately at the level of 2020 – investments are growing due to the recovery in demand for large projects. Transport projects, as the most capital-intensive, ensured the attraction of 47% of funds – while their cost was approximately halved (from 17 billion rubles in 2020 to 9 billion rubles in 2021). Note that the same trend is observed in the world as a whole – the market recovery is accompanied by a decrease in the average size of projects (from $ 243 million to $ 183 million), as well as the use of infrastructure investments to stimulate economic growth.
Experts call state support one of the factors in the recovery of the Russian market: within the framework of the “infrastructure menu”, it is planned to allocate 2.4 trillion rubles by 2030. Thus, funds from budget loans and borrowings within the framework of the infrastructure bonds mechanism can be spent, in particular, on the implementation of PPP projects. “It is expected that the state will continue to support the market of PPP projects in the future,” the report says. For example, it is planned to introduce capital grants from the federal budget or the NWF for road projects in the amount of no more than 50% of their cost.