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February 21, 2022, 09:02


Photo by M. Denisov.

These are contracts for the supply of medical equipment and the renewal of urban transport, agreements in the field of ecology, education, social support for the older generation, and a contract for the supply of medicines.

With the help of public-private partnership (PPP) mechanisms, the city attracts business funds for the implementation of projects of high social significance. In 2021, Moscow signed such contracts worth more than 100 billion rubles.

“Moscow is actively developing the practice of public-private partnership, which allows solving important infrastructure tasks with the help of investors’ funds. Thanks to the agreements signed with businesses last year, 52 life cycle contracts for the supply of medical equipment and the renewal of urban transport, four concessions in the field of ecology, education and social support for the older generation, as well as an offset contract for the supply of medicines will be implemented,” said Deputy Moscow Mayor on economic policy and property and land relations

Vladimir Efimov.

Under concession agreements signed in 2021, investors will invest a total of about three billion rubles in the creation of a geriatric center and an innovative school in the Skolkovo center. Two more agreements with a total investment of more than 35 billion rubles were signed in the housing sector. Two plants for the environmentally friendly processing of sewage sludge will be built in the capital, as well as the first facilities in Russia for the removal of nitrogen from wastewater and the extraction of phosphorus.

Thanks to life cycle contracts (LCC), Moscow renews public transport rolling stock and acquires modern medical equipment for medical institutions. In recent years, competitions have been held for the supply of more than five thousand units of medical equipment, 1.4 thousand new metro cars, more than 500 trams, and thousands of electric buses.

“Large-scale purchases have made Moscow a leader among the world’s megacities in terms of rolling stock renewal rates. The comfort and reliability of the new transport make travel faster and more attractive for millions of passengers,” said Deputy Moscow Mayor for Transport

Maxim Liksutov.

Reliable partnership and budget savings: how business helps the city develop transport

Life cycle contracts provide for the maintenance and repair of equipment by the supplier during the entire service life. Due to the long-term nature of the life cycle, they make it possible to obtain the best ratio of price and quality of equipment and its service, to evenly and predictably distribute budget costs.

“In 2021, the volume of LCC in Moscow exceeded 60 billion rubles. So, the city signed 15-year contracts for the supply and service of 400 electric buses, the total price of the contracts is more than 24 billion rubles. In addition, I signed 48 contracts for 26.7 billion rubles, providing for the supply of about 760 units of the latest models of medical equipment to the medical institutions of the capital,” said the head

Department of investment and industrial policy of the city of Moscow Alexander Prokhorov.

Last year, the city signed the first PPP agreement to collect and process broken electronic and electrical equipment for its subsequent disposal. Moscow will give the investor empty capital construction projects in Ostapovsky passage and Altufevskoye highway, which he will equip with the necessary equipment. The investor plans to send all the sorted equipment to processing enterprises, including its own factories. Thus, the 20-year PPP project will help reduce adverse environmental impacts.

Moscow signed the first PPP agreement for the collection and processing of decommissioned equipment

Another mechanism of public-private partnership is an offset contract. It provides not only the supply of goods to the customer, but also the counter investment obligations of the supplier: the creation, modernization or development of the production of this product on the territory of the subject. In 2021, the city signed such a contract for 1.1 billion rubles with the Moscow Endocrine Plant. The investor, in turn, will invest another billion rubles in the localization of production.

As noted by Olga Papysheva, chief physician of the city clinical hospital named after S.S. Yudin, the medical equipment purchased under life cycle contracts makes it possible to provide medical organizations with the most modern equipment, which makes it possible to diagnose more accurately and in a shorter time and start treating patients.

“This form of contract obliges the supplier to ensure the continuous operation of the equipment throughout the entire period of operation. Last year, our hospital received more than 60 units of new high-tech medical equipment according to the CLC. Among them are modern ultrasound machines, laparoscopic racks with a 3D effect for performing the most complex operations, modern video endoscopes that allow up to seven operations per day with minimal intervention in the patient’s body, computed tomography and much more,” said Olga Papysheva.

The total volume of public-private partnership agreements of the capital, concluded from 2013 to December 2021, exceeded 1.1 trillion rubles. Of these, about 120 billion rubles fall on concessions, about 530 billion rubles on life cycle contracts, more than 272 billion rubles on long-term agreements with an investment component (including 72.7 billion rubles on offset contracts), more than 200 billion rubles — for other PPP formats.

More information about the economic policy and property and land relations of Moscow can be obtained on the site.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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