Law on Concession Agreements Was Amended

Some changes aimed, in particular, to activate development of private-public partnership in the sphere of communal infrastructure were introduced to federal law "On Concession Agreements".  It is provided that communal infrastructure systems and other communal facilities, including water, heat, gas, electricity supply facilities, water discharge, waste water treatment, waste recycling and disposal (dumping) facilities, facilities for urban and rural settlement lighting,   land improvement facilities and social amenities may become a subject matter of a concession agreement without their prior withdrawal from the operating control of unitary enterprises.  However a unitary enterprise shall act in favor of the grantor.

Rights of the concessionary related to the communal facilities may be transferred as a security for the performance of obligation of the concessionary to the creditor.  Procedure for replacement of the concessionary in the event of levying execution on its rights is provided for.

If tariffs for goods, works and services of the concessionary are subject to the state regulating, a concession agreement shall provided for the provisions on attraction of investments and procedure for reimbursement of the expenses of the concessionary reimbursable pursuant to tariff law, but not recovered within the validity term of the concession agreement.

Some additional guarantees of the rights of the concessionary are introduced.

A possibility to enter into the concession agreement without prior tender with the lessees of the objects of concession agreements, which rented by them prior to July 1, 2010 is provided for.

In addition it is determined that not only immovable property may act as an object of the concession agreement, but also movable property technologically bound with the immovable property and  designated for conducting activity provided for by the concession agreement.

See: Federal Law No. 152-FZ "On Amendment of Federal Law "On Concession Agreements" and Certain Legislative Acts of the Russian Federation" dated July 2, 2010