CONCESSION, PUBLIC-PRIVATE PARTNERSHIP

Public-private partnership (PPP) is one of the ways to develop public infrastructure based on long-term interaction between the state and business, in which the private party participates not only in the design, financing, construction or reconstruction of an infrastructure facility, but also in its subsequent operation (provision of services on the created object) and (or) maintenance.

Subjects:
The concessor (the state) and the concessionaire (a private legal entity or their association), for a PPP agreement - a public partner and a private partner.

A public partner can be:
- Russian Federation
- Subjects of the Russian Federation
- Municipalities

Key differences between the concession and the PPP Agreement:
- within the framework of the CA, the ownership of the object is always retained by the public party (grantor);
- within the framework of the CA, the operation is always assigned to the concessionaire;
- within the framework of the PPP, the operation may be entrusted to the public partner;
- within the framework of the PPP, the ownership of the object of the agreement arises from the private partner.