Demography and social economy, 2012, 1(17):155-164
doi: https://doi.org/10.15407/dse2012.01.155

SIVAEV S.B., SHAKIROV T.A.

Selecting Criteria for Tendering Contracts for Public-Private Partnership in the Utility Sector
Section: Public-private partnership.
Language: Russian
Abstract: The article reviews competitive tendering for public-private partnership (PPP) contracts in Russian municipalities. The authors analyze tender documentation on the basis of the term of PPP contracts; the number and quality of selected criteria, and arrive at a conclusion that tenders for PPP contracts in Russia are inefficient. As a rule, the term of a PPP contract is maximum five years, which is the main reason behind the use of only one or two criteria and the absence of one of core criteria – price (tariff). The authors also review the most popular criteria used in PPP contracts and assess the relevance of their application.
In the authors’ opinion, the documentation for tendering PPP contracts should contain two types of criteria. Firstly, the operational-technological criteria, which would reflect the obligations of a lessee/concessionaire with regard to improving the operational performance indicators, and the period of time set for meeting the expected operational performance indicators; and, secondly, economic criteria, which could keep the financial needs of private operators in check for implementation of their obligations. The authors think that the most optimal economic criteria could be an investor’s tariff plan, which would make it possible to meet the operational-technological criteria within the tariffs set for the term of the contract. However, to apply this mechanism, it is necessary to make amendments both to the legislation of Russia and Ukraine. In this connection, the authors suggest that the so-called “estimated tariffs”, i.e. indices of annual tariff growth, could be used as an economic criterion, and such tariffs will enable investors to meet certain technical and economic indicators and upgrade the utility infrastructure facilities.
More broadly, the authors’ proposals with regard to selecting criteria for tenders will make it possible to enhance the efficiency of implementation of PPP projects both in Russia and Ukraine.
Key words: public-private partnership, concession, competition criteria, tariff plan, calculated tariffs.

» pdf