Smart Investments for Smart Infrastructure
New tools required to attract investment in infrastructure
Of course, we need a plan. But the national plan should not cover all markets. There are certain markets and certain parts of infrastructure, where <...> the market can make decisions and do it efficiently. This area needs to be expanded and supplemented with a system that would stimulate private capital attraction — Mikhail Rasstrigin, Deputy Minister of Economic Development of the Russian Federation.
The new level of management requires new approaches to formation of investment tools that allow investment to be made quickly, efficiently and effectively, in a ‘revolving’ way, to ensure a return and move on to further investment — Sergei Kelbakh, Chairman of the Board, Russian Highways.
New level of infrastructure management to be formed
Now a new level of infrastructure management of the whole is being formed. It is based on the use of digital technologies — Sergei Kelbakh, Chairman of the Board, Russian Highways.
The more factors we factor in when making an investment decision, the higher is the quality of this decision. <...> Digital technologies allow for the highest number of these factors to be factored in, and do it correctly and consistently — Mikhail Rasstrigin, Deputy Minister of Economic Development of the Russian Federation.
Infrastructure projects to be over-arching
I would also note the need for more comprehensive projects. Now we need to move to multidimensional facilities, transportation hubs <...> so that we can manage demand, and not just react to it — Nikolay Asaul, Deputy Minister of Transport of the Russian Federation.
PPP Projects: high credit risks
Now after Europe changed the legislation, direct involvement of insurance and pension funds in projects became more widespread. <...> But this requires investor to have significant analytical capacities — Igor Zelezetsky, Managing Director, Head of the Structured Finance Instrument, Analytical Credit Rating Agency (ACRA).
No standards for PPP projects
We need to follow the standardization path. <...> The more we standardize, the easier it is to finance it. <...> And it will be the most viable and will make investments most attractive — Nicolas Notebaert, Chief Executive Officer, VINCI Concessions; Chairman, VINCI Airports.
You cannot standardize either a concession or PPP. But it is possible to standardize their various elements and their ways interaction among themselves — Albert Eganyan, Chairman of the Board of Directors, InfraONE.
We are preparing standards for PPP. <...> And the first standard is based on zero tolerance to corruption, because corruption is a negative incentive for investment — Olga Algayerova, Executive Secretary, United Nations Economic Commission for Europe (UNECE).
Budgetary norms make PPP projects difficult to implement
As of today, there is a budgetary rule that makes it difficult to engage in public-private partnerships involving budgetary investments — Pavel Seleznev, Chairman, Public–Private Partnership Development Center (PPP Development Center).
Creating conditions to attract investors
Infrastructure becomes smart when it factors in the interests of all stakeholders and there is no infringement of anyone's interests — .
PPP bonds are now used to attract <...> investors. A broader range og investors may enter the bond — Igor Zelezetsky, Managing Director, Head of the Structured Finance Instrument, Analytical Credit Rating Agency (ACRA).
Programme based approach to budget investments
For us smart investments mean a programme based approach to budget investments. <...>Together with regions, we plan to create infrastructure programmes, infrastructure maps, PPP programmes, which determine the projects needed in the region. <...> In the coming year we will build regional and federal plans and we will work to ensure that new methods of planning appear — Pavel Seleznev, Chairman, Public–Private Partnership Development Center (PPP Development Center).
Modern technology ensure better performance
Everything should be cost efficient. Supermodern technologies, such as blockchain and others, should be used — Olga Algayerova, Executive Secretary, United Nations Economic Commission for Europe (UNECE).
It is extremely important to build a strategy for digitalization of technologies, digitalization of infrastructure. It is necessary to invest in developing technologies simultaneously with infrastructure so that everything is safe, efficient traffic management — Gianni Vittorio Armani, Chief Executive Officer, Managing Director, Anas SpA.
We should be talking about investments that you cannot just spend, but also return. This is the art of the participants in this process. <...> Speaking about smart infrastructure, I think that we should focus on the infrastructure related to digital technologies: technologies for managing physical infrastructure and traffic control systems — Dmitry Tvardovsky, General Director, Federal Centre for Project Funding.
The material was prepared by the Russian news agency TASS