VITALY KOROLEV: FAS IMPLEMENTED ELEMENTS OF RISK-ORIENTED APPROACH IN THE INSTITUTION OF CONCESSION AGREEMENTS

Until now, amendments in the first year of the agreement were banned, which in practice caused significant difficulties for investment measures and delayed the necessary changes or inaccuracy corrections for a year

Vitaly Korolev emphasized: “Now the ban is abolished and concessioners can curtain the current problems and prevent the future ones ate the early stage of concession execution. It allows to begin executing concessionary obligations immediately, without wasting time for amendments. It should be pointed out that concession agreements are fulfilled mostly in such social-and-important sector as housing-and-utilities and solving such problems becomes especially important and needs promptness”.

The Government of the Russian Federation adopted a relevant Decree*.

The document also clarifies and expands the list of grounds when the antimonopoly authority can approve changes to the conditions of concession agreements.

For example, many problems occurring in the course of changing conditions of concession agreements are related to changing the list of objects transferred to an investor under a concession agreement.  In practice, for instance, technologically ownerless, and functionally related to a current concession object, property can be revealed, transferring which to the current concessioner is expedient; however, earlier such grounds for changing the concession list did not exist; now the barrier is eliminated. Alternatively, implementing a concession, particular facilities can be decommissioned, which also required relevant changes to the concession agreement, which also requires relevant changes to the concession changed, making such amendments earlier was difficult.

“The amendments will help solve the issues, streamlining and accelerating changes to concession agreements, and attract additional private investments to the housing-and-utilities sector”, added Vitaly Korolev.

At the same time, FAS continues the work to control over compliance with the antimonopoly law, particularly, executing concession agreements. For example, the amendments obligate to prove cause-and-effect relations between the ground for amendments and the amendments themselves.

According to FAS, this measure will help avoid unreasonable and sporadic changes to concession agreements, which will exclude possible risks of abusing by the parties to concession agreements.

* No. 708 Decree of the Government of the Russian Federation of 03.06.2019