Putin began a large-scale modernization of Russia's infrastructure
In Russia, on behalf of President Putin, an infrastructure modernization program has been launched. The government will have to increase the attractiveness of investments in roads through the so-called infrastructure mortgage. What is it?
Infrastructure mortgage is a new mechanism that will be able to give a private investor the opportunity to lend to the state in the construction of roads, bridges, gas pipelines at competitive rates. The return on private investment in infrastructure facilities is supposed to be made through regular payments that will come from their main beneficiaries. President Vladimir Putin explains the basic principles of a new type of public-private partnership:
The head of VTB, Andrey Kostin, believes that it will be possible to attract 1-8 private rubles of investments per 10 state ruble using this formula, and participants in the insurance and pension markets will be interested in infrastructure bonds. Other experts also believe that an infrastructure mortgage can really increase GDP growth if it costs 2-3%, be issued under the guarantee of the holding, have real assets in the form of roads, stations, road junctions, communication lines, buildings, bridges and other things.
Due to the effect of developing roadside territories using a new financial mechanism, it will be possible to build a network of modern highways in Russia. But on this, the tasks assigned to the Government of the Russian Federation by the president are not exhausted.
The executive branch has been appointed responsible for a series of measures for the gradual renewal of the country's fleet. Road transport on new roads will have to comply with the latest technical and environmental standards.
Remote regions of the Russian Federation should be connected by regular and accessible air communication to the population. The President of Russia instructed the head of the Cabinet of Ministers to stimulate the production of regional aircraft with a capacity of up to 65 people for domestic flights, as well as create comfortable conditions for the purchase of these aircraft by Russian air carriers.
It can be concluded that the newly elected President Putin, as promised, began his six-year term with a large-scale program to upgrade the state’s infrastructure.
Infrastructure mortgage is a new mechanism that will be able to give a private investor the opportunity to lend to the state in the construction of roads, bridges, gas pipelines at competitive rates. The return on private investment in infrastructure facilities is supposed to be made through regular payments that will come from their main beneficiaries. President Vladimir Putin explains the basic principles of a new type of public-private partnership:
We are talking about introducing a kind of infrastructure mortgage, when the object is actually bought on credit received from private investors, and the user of the object gradually repays this loan
The head of VTB, Andrey Kostin, believes that it will be possible to attract 1-8 private rubles of investments per 10 state ruble using this formula, and participants in the insurance and pension markets will be interested in infrastructure bonds. Other experts also believe that an infrastructure mortgage can really increase GDP growth if it costs 2-3%, be issued under the guarantee of the holding, have real assets in the form of roads, stations, road junctions, communication lines, buildings, bridges and other things.
Due to the effect of developing roadside territories using a new financial mechanism, it will be possible to build a network of modern highways in Russia. But on this, the tasks assigned to the Government of the Russian Federation by the president are not exhausted.
The executive branch has been appointed responsible for a series of measures for the gradual renewal of the country's fleet. Road transport on new roads will have to comply with the latest technical and environmental standards.
Remote regions of the Russian Federation should be connected by regular and accessible air communication to the population. The President of Russia instructed the head of the Cabinet of Ministers to stimulate the production of regional aircraft with a capacity of up to 65 people for domestic flights, as well as create comfortable conditions for the purchase of these aircraft by Russian air carriers.
It can be concluded that the newly elected President Putin, as promised, began his six-year term with a large-scale program to upgrade the state’s infrastructure.
Information