Public-Private Partnership (PPP) and Infrastructure

 

In recent years, public-private partnership (PPP) and municipal-private partnership (MPP) have become increasingly popular tools for infrastructure development in Russia. These mechanisms have proven their effectiveness, allowing to attract private capital for the implementation of socially significant, transport, industrial and digital projects.

Cooperation between the state and business under the PPP model contributes to the development of regions, the modernization of facilities, improving the quality of services and the formation of long-term sustainable investments. At the same time, the state receives modern solutions, and business receives guarantees, clear rules and a reliable legal basis.

Legal Support for PPP Transactions and Projects

BRACE Law Firm provides services for the support of PPP projects and project financing. We support transactions from the idea to market entry and subsequent execution.

Our lawyers advise on the following issues:

1. concession and industry legislation;
2. structuring of infrastructure projects;
3. development of legal architecture;
4. project financing (bonds, loans, leasing);
5. transaction execution and support of tender procedures;
6. support of negotiations, execution of agreements, financial closure;
7. legal support in courts and interaction with government agencies.

BRACE provides comprehensive support for PPP projects with the involvement of the necessary external organizations, as well as project financing, the use of leasing schemes, investment lending, project financing in the form of acquiring a package of securities or a share in the authorized capital, the establishment of a new company with the equity participation of the project initiator and attracted co-investors, including with the involvement of foreign capital.

PPP and Infrastructure Lawyers

BRACE lawyers provide legal support at various stages of the implementation of a PPP project, from structuring to its completion, and, if necessary, represent the interests of clients in court in disputes related to the implementation of the project. BRACE lawyers advise both public and private capital representatives in the area of structuring PPP projects, as well as in matters of developing financing schemes of varying degrees of complexity. Among other things, we provide the following legal assistance:

1. formulate a strategy for implementing a PPP project;
2. create a legal model of the project;
3. prepare documentation and support participation in tenders;
4. protect the client's interests in disputes related to the implementation of PPP.

Preparation of PPP and Concession Agreements

We provide support in the development and conclusion of:

1. concession agreements;
2. PPP and MPP agreements;
3. life cycle contracts;
4. offset agreements and
5. special investment contract (SPIC);
6. operator and contracting contracts.

We provide support to clients throughout the entire project life cycle – from developing the project strategy and concept, its legal “architecture” (including defining the organizational and legal structure), conducting preliminary negotiations, preparing all necessary project documentation and selecting (identifying) an investor for its implementation (both with and without a tender, including on the basis of private initiative) to achieving commercial and financial closure of the project. We will also help implement projects for the creation and modernization of industrial production based on a life cycle contract and offset purchase, as well as in the field of concluding state and operator contracts in any industry.

PPP in Construction and Reconstruction

PPP projects for the construction and reconstruction of such facilities as:

1. healthcare and social services facilities
2. urban and other transport;
3. highways and railways;
4. airports;
5. educational and sports institutions;
6. housing and communal services and solid municipal waste facilities;
7. energy and natural resources facilities;

International Projects and Participation of Foreign Investors

The involvement of foreign investors in PPP projects has a number of restrictions and features that must be taken into account when implementing PPP projects.

We support international PPP projects in Russia, the CIS and neighboring countries, consulting on the legal features of foreign investors' participation in infrastructure facilities. We take into account all restrictions, currency and legal risks, and also build effective models for attracting capital.

Legal Services

1. Legal due diligence of PPP projects at all stages of the life cycle
2. Selection and legal assessment of PPP project support measures
3. Structuring investment projects
4. Support for negotiations on PPP transactions
5. Formation of standard documentation for the implementation of the PPP project scaling strategy
6. Development of documents for concluding an agreement, including draft concession agreements and PPP agreements
7. Support for financial closure and preparation of documents for attracting financing, including direct agreements;
8. Support for the implementation of a PPP project throughout its life cycle;
9. Consulting on concession agreements and development of relevant documents
10. Preparation of tender documentation and support during the tender
11. Consulting on labor relations related to the functioning of PPP projects
12. Consulting on financial aspects of infrastructure transactions