The law on PPP entered the mechanism of guaranteeing an invariance of key parameters of implementation of the project

On January 1, 2016 the Federal law No. 224-FZ regulating implementation of projects of public-private partnership, municipal and private partnership in the Russian Federation came into force.

The law is directed on formation of conditions for creation and modernization by private investors of objects of public infrastructure (social, transport, infrastructures of communication and power industry) for improvement of quality of the services provided to the population. Rules and approaches to implementation of projects of state-private and municipal and private partnership in the Russian Federation are established by the law.

One of key innovations of the law on PPP is emergence of possibility of a private property on the created or reconstructed objects of public infrastructure. The investor thus is obliged to provide full or partial financing of creation of such infrastructure and operation of object according to its purpose which is registered as encumbrance of object.