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Kachkin & Partners lawyers discussed legal complications of utility networks’ construction

Today “Construction Daily. Leningrad Region” newspaper has held a round table meeting on “Who will pay for networks?”. Evgeniy Shirstov, the Real Estate and Investments Senior Associate at Kachkin & Partners, gave a speech on legal hinders faced by investors in technologic hook-up of capital construction sites to utility networks. Alexandra Ivanova, the Head of PPP and Infrastructure Practice and Irina Mitina, the Associate of the same department attended the meeting. Lidia Gorborukova, the deputy editor-in-chief, became the event’s moderator. 

The evolution of the housing construction, industrial areas in the Leningrad region steps up. However underdeveloped utilities, road and social infrastructure slows down land development. The participants sought for the answer: what measures should be taken to change the situation? They talked about the existing programs on reconstruction and development of networks in the Leningrad region, problems in implementation of utility infrastructure of low-rise rural settlements. The following questions raised the discussion: who should pay for installment of utilities and road infrastructure in the Leningrad region – the government, a private investor, under PPP; and how the authorities might attract an investor to establish utility infrastructure: on what terms an investor would agree to participate in establishment of these facilities?

Evgeniy Shirstov complained on low efficiency of PPP mechanisms in the modern municipal services and noted the unwillingness of the government to share risks and the PPP benefits misunderstanding demonstrated by domestic investors’ in regard with hooking up the sites to utility networks. The existing PPP projects in the municipal sphere, implemented in the Urals and South of Russia, are aimed to large-scale reconstruction and establishment of utility infrastructure, but there is no mechanism to solve single problems of investors, he thinks.

It is necessary to suggest new models of interaction between an investor and the government, in the first place, reimbursement to investors for the use of their land to lay networks and to establish engineering facilities with the money coming from business.

Representatives of construction companies, land developers, market analysts, representatives of the Leningrad region Administration and the legislature participated in the discussion.

ПОДЕЛИТЬСЯ

Денис Качкин

Адвокат
Управляющий партнер
Руководитель практики по инфраструктуре и ГЧП
Заведующий базовой кафедрой юридического факультета НИУ ВШЭ — Санкт-Петербург

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Денис Качкин

Адвокат
Управляющий партнер
Руководитель практики по инфраструктуре и ГЧП
Заведующий базовой кафедрой юридического факультета НИУ ВШЭ — Санкт-Петербург

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