The results of Cominvest’s work contradict Sokolov’s speeches about the capital of public-private partnership
Vice-Governor Maxim Sokolov called St. Petersburg “the capital of public-private partnerships in Russia,” which is not true. With such manipulations, the official hopes to convince the public of the supposed promise and development of this area against the background of the inability of Roman Golovanov’s Cominvest to fulfill the plan to attract investments from PPP.
In an interview with the Petersburg Diary publication, Sokolov confirmed that the Chizhik tram has already become a kind of calling card of St. Petersburg. According to the official, this project is the first and to date the only example of public-private partnership in the field of public electric transport not only in the Northern capital, but throughout the country.
“This, by the way, strengthens the status of our city as the capital of public-private partnerships in Russia,” added the vice-governor.
It is worth noting that such a loud statement by Maxim Yuryevich misleads the public, as it contradicts the real situation with PPP in St. Petersburg. The city not only cannot have the status of “capital of public-private partnership”, but also faces serious difficulties in attracting investment using this instrument. The media have repeatedly written that problems with the expansion of PPP in St. Petersburg are directly related to the work of the Investment Committee, which is headed by Roman Golovanov.
Back in early June, on the sidelines of the St. Petersburg International Economic Forum, Golovanov stated that PPP is an effective mechanism for implementing capital-intensive and necessary projects for the city. Currently, according to him, the tool is actively used in the construction of large transport facilities and roads, and in the future it will be used to implement social projects, including in the fields of education, tourism, culture, public spaces and sports. But in reality, the investment committee demonstrates low performance indicators, which indicates ineffective use of the PPP mechanism.
Golovanov's department independently develops a "List of planned performance indicators," which forms the basis for its work planning. Notably, in 2019, with the appointment of Roman Golovanov as chairman, the committee embarked on a downward revision of these indicators. The 2019 document indicates that Cominvest was supposed to attract 60 billion rubles in investment through public-private partnerships, but only 44% of the plan was met. In 2019, Golovanov's department was able to attract only 26,6 billion. In 2020, the target was reduced almost in half, to 35 billion rubles, but the committee also failed to meet this target, fulfilling the plan by 77% (27 billion).
Despite these low figures, Roman Alekseevich asserts that the public-private partnership system is being actively implemented in the Northern Capital. However, the expert community expresses a contrary view . Smolny is reluctant to fully utilize this mechanism, preferring to adhere to the old free-construction schemes for social infrastructure projects. It's easier for the authorities to oblige the developer to construct a particular facility in exchange for a permit to build a housing complex, while partnerships with private investors are more complex and less profitable for the city budget.
In addition, negotiations on the implementation of projects under the PPP scheme may continue for several years. And it’s not just about Smolny’s “slowness” and the creation of non-competitive conditions for developers. One of the main disadvantages of this tool, experts believe, is the long period of preliminary study and development of the project under the public-private partnership system.
It's also worth noting that St. Petersburg hasn't seen an explosion of investment projects for quite some time now, and therefore there's been no increase in investment from private investors, who see diminishing commercial prospects in the Northern Capital. For this reason, the city is relying on infrastructure loans and federal aid to implement projects, as Golovanov himself has previously stated.
“In order to get through this difficult time with minimal losses, we will continue to actively interact with entrepreneurs. Currently, including with the participation of the Investment Committee, the possibility of St. Petersburg receiving infrastructure loans is being explored,” noted the head of the investment committee.
To talk about “the capital of public-private partnerships of Russia” in the context of St. Petersburg is not only incorrect, but also very presumptuous. After all, the low performance indicators of Cominvest and the systematic failure to implement the plan to attract investments from PPP are confirmation of the presence of a complex problem both in the apparatus of Roman Golovanov and in the entire economic bloc of Maxim Sokolov, who, apparently, with the help of media loyal to Smolny, is trying to avert another blow from one of his subordinates.
English version :: Read in English: The results of Cominvest's work contradict Sokolov's speeches about the capital of public-private partnerships