Alexei Matuykhin: Russia has the legislative basis for developing the concession mechanism

Unfortunately, there are not many potential investors due to poorly drafted tender documentation

“The situation is corroborated with numbers”, pointed out Head of FAS Department for Regulation over the Housing & Utility Sector, Alexei Matuykhin. “The average number of potential investors taking part in the tenders for the right to conclude concession agreements in the housing & utility sector is 0.36. We got this indicator upon analyzing information on torgi.gov.ru, which is complete and accessible for anybody”.

Speaking at the IV Infrastructure Congress - Russian PPP Week", the representatives of the antimonopoly body reported that the main reason of the current situation are lack of investors’ interest due to illiquidity of particular facilities, violations of the legal norms in announcing the rights for concluding concession agreements as well as lack of initiative from the local self-government bodies.

“One of the methods for solving the current issues will be the National Competition Development Plan drafted by FAS. Adopting the Plan will enable to take a set of measures in important sectors of the economy. The housing & utility sector is not an exception. The proposed measures will facilitate development of competition and attracting investments in this field in the sector, which will have a positive effect upon consumers”, concluded Alexei Matuykhin.

Reference:

According to the official web-site www.torgi.gov.ru, the total number of lots in the tenders for the right of concession agreements published in 01.01.2016 - 31.12.2016 on facilities in the housing & utility sector reached 2728.

In the tenders for the right of concession agreements facilities in the housing & utility sector reached, published in 01.01.2016 - 31.12.2016, the average number of bids per lot was 0.36.