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PPP projects in medicine, sports show great promise — Novosibirsk governor

Certain macroeconomic factors also serve as a key constraint on the development of PPP mechanisms, Andrey Travnikov noted

NOVOSIBIRSK, October 3. /TASS/. Such sectors as waste processing, medicine and sports offer significant promise for initiating investment projects under the public private partnership (PPP) format, Novosibirsk Region Governor Andrey Travnikov told TASS in an interview.

Several large-scale PPP projects are currently being implemented in the region, including for the construction of a fourth bridge across the Ob River, the development of seven new outpatient medical facilities, and a school-building program.

"I see considerable upside for projects under PPP terms, for example in waste processing and medicine, and in the field of building sports facilities. We will probably use this instrument prudently in those niches where it makes sense to do so, but will not resort to it in all other areas. This is also because our construction volume is so large, even under government contracts, that the construction segment simply doesn’t the capacity to absorb any further workload," Travnikov emphasized.

Certain macroeconomic factors also serve as a key constraint on the development of PPP mechanisms, the governor noted. "A PPP is a de facto loan, and when the Central Bank’s key interest rate skyrocketed to 20% last year, we had to slow projects down artificially. We are seeing interest rate fluctuations taking place this year as well," Travnikov added.

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