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Russian MoH published PPP best practice models to encourage private investments - P4H Network

Russian MoH published PPP best practice models to encourage private investments

The Ministry of Healthcare of Russian Federation has published powerpoint presentations describing three examples of best practices in public-private partnership (PPP) in health sector in Russian Federation.

The materials were published to illustrate and encourage private investment into health care infrastructure.

The first presentation available for download is a Concession Agreement for running a dialysis center, realized in Samara Region. It illustrates the construction and operation of a dialysis center (“Center for extracorporeal hemocorrection and clinical transfusiology”) in Samara. The Concedent is Government of the Samara Region; the Concessionaire is a private firm “FARM SKD” LLC, and the medical operator is the Samara Regional Hospital named after Seredavin. This project created 24 jobs and the total cost of the project for the entire implementation period (15 years) is 471.6 million rubles.

Social and economic effect is measured by an increase in capacity from 20 dialysis machines to 61 “artificial kidney” machines, and service availability growth from 323 per million population to 450 per million population.

All investments are made at the expense of the private sector, and no budgetary funds from the budget system of the Russian Federation is involved. This project has won 5 awards, including its publication in the recommendations of the Ministry of Economy of the Russian Federation.

The second file uploaded is best practice in public-private partnership realized through a PPP agreement aimed at recreational center in Stavropol region, the city of Kislovodsk. The project involvs reconstruction of a cultural heritage site — a sanatorium and aims to build a new facility – rehabilitation (medical center) for 460 beds, incuding a spa center.

Under the agreement, investments worth 1 878 million (1.8 billion) rubles are being made by the private partner, who is also responsible for the operation and maintenance of the facilities. The project is for 6 years and creates more than 380 jobs. This project also does not involve any state funds.

The third project illustrates an example of a lease agreement with investment obligations for a center that performs reproductive technology services (infertility treatment). This project is realized in the city of Murmanks and involves the creation of a center for reproductive technologies at the premises of a public health care facility – the Murmansk regional clinical multidisciplinary center. Project cost is 33 million rubles, all of which is to be covered by the private investor in about 6 years. This project will bring 3 million rubles worth of taxes paid to the state tax system.

Source: Ministry of Healthcare, Russian Federation