For implementation of large-scale IUD projects Renova StroyGroup seeks to establish the mechanism of public-private partnership. Efficient co-operation between authorities of different levels and enterprises is the key to achieving common goals: while commercial projects bring profit to businessmen, they also present municipal authorities with an opportunity to increase the standard of living as well as to improve the investment and social climate of their cities; finally, federal authorities obtain an efficient mechanism for tackling national policy tasks. For example, the Akademia City project (IUD) in Yekaterinburg is expected to increase the municipal budget revenues by 15-20% and the regional budget revenues by 5-7%.
Regional authorities are interested in large investments in the regional economy, which can be provided by private capital. On the other hand, private enterprises need political support for their long-term projects and assistance in day-to-day situations. Public-private partnership is the main means to reduce investment risks. It also enables the actors involved in IUD projects to clearly distribute responsibilities and to fix mutual obligations that are documented.
The mechanism of the public-private partnership in Russia is currently at the stage of formation. For elaborating a new principle of interaction between government and business, it is the private capital that can be the uniting and driving force. At the moment, the most important task is to develop the unified legal foundation of the public-private partnership. But even though this mechanism is relatively new and imperfect, there already exists the first successful example of its implementation: the Akademia City project that has now entered the phase of practical implementation owing to the working public-private partnership.