Tatarstan Investment Development Agency will spend millions on consultations — RealnoeVremya.com

For Tatarstan to initiate investments itself and dictate terms

As Realnoe Vremya found out, the Tatarstan Investment Development Agency (TIDA) will order consultations to create public investment in projects through public-private partnership. He is ready to pay 17 million rubles from the Republican budget.

The agency entrusts several tasks to the entrepreneur. They will have to be executed in three stages and will not last longer than 210 days.

“Today in Russia, there are only isolated cases of full exercise of the right of public initiative within the framework of Federal Law No. 224 (Editor’s note: on public and private partnership, municipal and private partnership in Russia). All these cases were implemented only through outsourcing. By the way, when preparing a private initiative, all investors also resort to outsourcing. This means that the requirements for the preparation of documents are sufficiently strict. In fact, we are the first to “sell” the packaging of projects so that the republic itself initiates investments, dictates the terms and conditions of participation in projects, ”the head of the Agency for investment development of Tatarstan, Talia Minullina.

The signing of at least five agreements, including direct agreements with funding agencies, “promising projects” approved by TIDA providing for the expansion of Tatarstan’s export capacities and/or reduction of dependence on Russia and of Tatarstan vis-à-vis imports must become the result of consultations.

The signing of at least five agreements, including direct agreements with funding agencies, “promising projects” approved by TIDA must become the result of consultations. Photo: realnoevremya.ru

The documents, within the meaning of the terms of reference, must be signed in the manner provided for by the legislation on public and private partnership and concession contracts:

“The specifications take into account the obligation for the contractor to prepare sets of documents for at least five public-private partnership projects in different sectors, which will allow them to be expanded in the future. Also, the attraction of private investors who will finance the projects is an important condition of the call for tenders. The services of preparing these documents will only be paid after the implementation of the public-private partnership projects,” explained Minullina.

Achieve a decrease in import dependence

Initially, it will be a question of determining the priority projects via a public and private partnership and a concession agreement. The Tatarstan Investment Development Agency demands to focus on low-carbon neutral projects in the fields of pharmaceuticals, agriculture, production of new materials and semiconductors.

The agency also chose its objectives. First of all, it is to ensure the promising research and development and socio-economic development of the republic. Secondly, to increase the export capacities of Tatarstan and/or to reduce the dependence of the republic and the country in general on imports. Projects must be new. They cannot repeat ideas that have already been implemented or are expected to appear in Tatarstan.

The Tatarstan Investment Development Agency demands to focus on low-carbon neutral projects in the fields of pharmaceuticals, agriculture, production of new materials and semiconductors. Photo: lpcma.tsu.ru

As a first step, the contractor will have to review political documents of Tatarstan, strategic initiatives of socio-economic development of Russia until 2030 and other available information that will help to choose priority areas for promising public partnership projects and private.

The list of promising sectors for launching initiatives must be made taking into account the positive experience of projects implemented in the regions. The list must be approved by TIDA. The financial aspect is discussed with the agency.

TIDA, in turn, promises to help with the task, indicating the need for specific projects in Tatarstan. A list of potential projects is prepared taking this information into account. It is planned to create a working group to achieve the goal. After approving the final list of promising projects, the contractor should start building roadmaps of key actions.

The first stage will cost almost 697,000 rubles. TIDA gives only 30 days from the signing of the contract to complete the task. If the agency has any remarks, the contractor must eliminate the imperfections in two days and then provide improved documentation.

Legal issues will also need to be considered in the second stage. Photo: legemnews.ru

The legal terms of the agreements to be discussed in the government of Tatarstan

In the second step, the contractor must prepare the key conditions for the implementation of the projects. The contractor must complete the assigned task within 50 days of the end of the first stage.

In addition, the contractor will be required to prepare high-level financial models of approved projects and choose priority financing options within the framework of a public-private partnership. In addition, the Contractor must determine and approve the approach for allocating financially significant risk projects and a compensation mechanism among project participants.

Legal issues will also need to be considered in the second stage. In particular to determine the key legal conditions of future agreements, taking into account the consolidated financial indicators of the projects.

At the second stage, the working group will be created within the government of Tatarstan for discussion. The project working group will discuss important legal terms of the agreements regarding each project.

In the final phase of the second stage, the contractor will have to prepare presentations for each approved project. It is planned to use them in preliminary interviews with potential investors.

The second stage was valued at 1.9 million rubles.

At the second stage, the working group will be created within the government of Tatarstan for discussion. Photo: Maxim Platonov

Selection of potential investors and signature of agreements

The third final stage will be the most expensive, it is planned to allocate more than 14 million rubles for it. At the same time, it is also the longest stage – the entrepreneur has 80 days to do the work, 20 days are given to evaluate his performance by the Investment Development Agency.

In the third step, potential investors will be chosen. It is planned to discuss with them the main conditions of the projects.

Before the discussion, it is necessary to make a priority list of potential investors and then send them the key conditions of the projects within the framework of preliminary interviews. Their discussion with potential investors is also the duty of the entrepreneur.

After the talks, a table of the main remarks and recommendations should be created for the text of the key conditions of the agreements and the financial parameters of the projects for further discussion with the Tatarstan Investment Development Agency. In case of remarks from the agency, the contractor must update the version of the key conditions.

Then, it is necessary to prepare at least five drafts of tender documentation, recommendations of requirements for bidders and basic recommendations for hosting a tender indicating the main risks of the public part. The contractor must also support the procedure for launching a public initiative.

The final touch is that the entrepreneur must accompany the signing of the agreements and the signing of the direct agreement with the financing body, in other words, to finalize commercially and financially at least five projects among the projects approved by the ‘Tatarstan Investment Development Agency.

Tatiana Dyomina

Analytics Tatarstan

Rose D. Jones