In the Republic of Belarus, the legislative framework for the implementation of PPP projects is the Law on “On Public-Private Partnership” of December 30, 2015 No. 345-Z. The document takes into account and describes in details the responsibilities and interests of two parties - business and the state.

What is PPP

Public-private partnership means a special mutually beneficial form of interaction between the state and the investor. The investor and the state sign an agreement that clearly and flexibly aligns the boundaries of interaction in the implementation of infrastructure projects. With such cooperation, the resources of the parties are combined and risks are distributed. Any private organization can act as an investor. The exception is those organizations that have more than half of the shares or shares in the authorized capital owned by the state.

In what cases is PPP possible? When it comes to important infrastructure projects in the field of energy, tourism, culture, transport, sports, healthcare, housing and communal services, etc.

The main advantages of the PPP agreement

Benefit for the state

• The financial burden is falling, which makes it possible to allocate the budget more efficiently;
• Some of the risks are transferred to a private partner;
• The influx of modern technologies is growing, the quality of services provided and goods produced is improving in the country, and the welfare of society is increasing;
• Construction of the facility is underway at an accelerated pace.

Benefit for the investor:

• The invested money pays off with a stable long-term income;
• The company increases its influence and status in the domestic and foreign markets;
• A positive credit history and rating is formed;
• Capacities are loaded, product sales are well-established.

 

It is also important to note that the prospects of PPP influence the creation of open and flexible laws that will significantly simplify the interaction of both parties and become attractive to investors, since a sense of stability is important for business. The renovation of old and construction of new facilities stimulates the development of the country. The arrival of investors is associated with new technologies and a new level of service, which means improved infrastructure increases the standard of living of the population.

 

Many people are interested in the disadvantages of PPP. Most often, PPP projects are highly expensive and sometimes their approval can take a long time.

Stages of PPP projects

• Proposal preparation, review, analysis and evaluation;
• Making a decision to implement a PPP project;
• Organization and holding of the competition. Depending on the subject of the agreement, it can take place in two or three stages (with consultation);
• Signing of the agreement;
• Project implementation.

At the legislative level in Belarus, it is allowed to conclude a PPP agreement without holding a competition. This option is provided for projects that do not require payments from the budget.

It should be understood that in PPP the parties, the investor and the state, are equal partners. To achieve their goals, they not only pool material and financial resources, they also distribute risks and responsibilities. This is a distinctive feature of PPP.

PPP Center

The Center for Public-Private Partnership has been created and is functioning in Belarus, which is part of the structure of the National Agency for Investment and Privatization.

Main functions of the PPP Center in Belarus:

- consulting on PPP issues  

- assessment of projects for compliance with legislation

- dissemination of up-to-date information on the PPP mechanism and project initiatives  

PPP and concession differences

These are two completely different patterns of relationships between business and the state. In the case of PPP, the parties are equal partners. To achieve their goals, they combine material and monetary resources, while both parties bear the risks, arising from the implementation of the project. When it comes to a concession, the execution of the project, as well as the risks, falls on the the investor.

Find out in more detail what is a concession agreement in Belarus and its types, how the concessionaire is selected and what is the object of the concession.

On our website, you will find all the necessary information about projects that can be implemented within the framework of PPP. Contact us so that our specialists can select the best option for you to develop your business in the desired region of Belarus. If necessary, your personal manager will provide you with advice.

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