Our country got interested in a Public-Private Partnership just now although critical road wear and transport power  was evident long ago. PPP is definitely necessary in the spheres where the privatization is not possible but the demand of private investments is always felt, for example modernization and exploitation of roads, ports, flight strips, railway lines.  

Many projects in the transport sphere are demanded and can attract financing. But very often the project is made out of logic of a private investor and out of understanding of the applicability of the mechanisms of PPP. As a result the projects are not realized. 

One of the main regulatory legal acts that regulate activity of PPP is the federal law of concessions. Having analyzed the first experience of concessional contests including the transport sphere we came to disappointing conclusions. Unfortunately the current law of choice execution on the basis of which the contests for the realization of the range of the PPP projects are carried out, contains essential changes. 

Thus the list of criteria applied to the participant of the competition can not be expanded, and carrying out of negotiations at the stage of contests is not foreseen, the stage of conclusion of the contract is also prohibited. Abroad the process of discussion of concession agreement conditions takes 6-12 months which is connected with the special duration of the terms of agreement conclusion, increased level of responsibility of both parties and detailed description of all further actions. And this term is deemed to be totally normal and even necessary one for the correct interaction and professional realization of the project. It is better to foresee in advance all the possible problems that may arise during the concession period, rather than to solve them at the stage of the construction herewith jeopardizing the project which is very peculiar to us.

Along with it the law of concessional agreements obliges the parties to conclude definite contracts in accordance with the elaborated standard ones.  But such capital intensive and unique shouldn’t be standard but take into account the specificity and peculiarities of every single project. 

Besides it is necessary to foresee the possible opportunities of passing the disputes arising between the parties to the review of the international commercial arbitration as well as outside the Russian Federation.  Introduction of the given provision will contribute to the attraction of the foreign funds and give more guarantees and safety to the foreign investors.

It is necessary to elaborate and issue a document that would strengthen the interest of the government and business, develop the priority directions of the branch, update the legislative basis of PPP development, paying more attention to the development at the stage of regions.
 
Construction of the railway is one of the spheres that needs PPP.
The example is a unique experience of St. Petersburg that proved in practice the efficiency of innovation in PPP sphere (construction of the Western High-Speed Diameter). The law of St. Petersburg can be taken as the basis of the legislation practice in each region of Russia.  

One more whip of the PPP projects is an absence of the registration of rights on lands necessary for the realization of the projects. The difficulties also arise due to the fact that within a project it is necessary to have the lands pertaining to different owners.  

There is an example. Our company faced a range of questions having taken one of the major transport projects realized in the south of Russia and rendering support of all the activity of the foreign investor who gave consent for the contest on the conditions of PPP and to begin the construction of the very important object of the country. Some questions dealt with the seizure of lands and other realty for the construction of our object while the others dealt with the poor elaboration of the subjects of the interaction of the investor and the government.  Herein the decision of them all depended on the government. 

The investor and us as a company that maintains the full legal maintenance and agency had to break up demonstrations of local residents who protested against the construction nearby their houses, regulate the questions of condemnation of old buildings in the place of the construction of a new object, carry out negotiations with the local residents in order to relieve the aggression against foreign workers. 

We share the opinion of the president of PPP center of Vnesheconombank Alexander Bazhenov that the government must learn to give promises concerning the projects in the form that allows getting the compensation of losses arisen in case of default of obligations by the authority through the arbitral court. In order to avoid such cases the government should foresee the hazards of regulation on the basis of economic of the infrastructural project that provides economic increase. Realization of the project depends on neither the presence nor absence of financing in the country during the crisis phenomena, but the quality of preparedness.

But still taking into account the youth of the global development of PPP in Russia one can definitely say that this phenomenon has a prospective future. PPP projects relieve the expansion into the world capital markets; inspire the attraction of foreign investments into the real economic sector. PPP carries a significant importance for economic of the regions where the local markets of capital, goods and services are being developed on its basis. Correct and successful application of PPP is a supposition for the prosperity and rapid development of the social-economic and consequently the transport spheres.