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Public-private partnership projects in Arctic require state incentives — deputy minister

The deputy minister stressed PPP is an important mechanism for the Arctic

MOSCOW, March 18. /TASS/. Public-private partnership (PPP) projects in the Arctic require special incentives. The Ministry for Development of the Far East and Arctic will include them into the package of bills on preferences for investors in the Arctic or will offer them in the form of a separate system, Deputy Minister Alexander Krutikov told reporters on Tuesday.

On March 12, the ministry’s bills on incentives for investors in new projects in the Arctic passed the State Duma. Earlier, on March 5, the State Duma adopted a bill on mineral tax relief for investors in Arctic projects.

"Public-private partnership projects should have a separate system of incentives," the deputy minister said. "We have to see whether we can manage it within the current discussion of the bill or whether we should prepare separate legislative initiatives."

The deputy minister stressed PPP is an important mechanism for the Arctic, which will attract private capital to organization of infrastructures.

"Many regions have used this form, including in the Arctic zone, however, those are rather exceptions. If we <…> make such projects attractive for businesses, we can at least quicker solve the task to raise the living standards, and we shall save the taxpayers’ money - which, I believe, is very positive," he said.

In order to use widely public-private partnership in the Arctic, the country should offer a truly effective system of incentives, the deputy minister added.

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