Form of proposal for concluding concession agreement on initiative of private party is approved
Amendments to Federal Law “On concession agreements” allowing an interested entity complying with the relevant legal requirements to initiate the conclusion of a concession agreement by sending a proposal in the established form, along with the draft concession agreement attached, to the authorized body, enter into force on May 1, 2015.
Resolution No.300 of the Russian Government “On approving the form of proposal for concluding a concession agreement with an entity initiating conclusion of a concession agreement,” establishing the procedure for proposing initiatives, was adopted on March 31, 2015 in the fulfillment of the above law.
According to the Resolution, the initiator and the initiative must comply with several requirements. Among other things, the initiator must confirm:
- The initiator’s status (absence of decision on liquidation or cessation of activity, absence of court ruling on commencement of bankruptcy proceedings in respect to the initiator, absence of arrears on mandatory payments to the state budget, etc.);
- Availability of funds to the initiator or a possibility of obtaining them in the amount of no less than 5% of the sum of investments claimed in the draft concession agreement;
- Compliance of the initiative with government programs, etc.
The proposal must also indicate:
- Information on the initiative, including a brief description of motivation/timeliness, goals and objectives of the planned project;
- Information on property created and/or reconstructed under the concession agreement;
- Cost estimate for the project;
- Information on availability of the project documentation and other information.
Should any questions arise in connection with the above or if you need any additional materials, please contact Pavel Karpunin or Rimma Leshcheva, St. Petersburg Office of Capital Legal Services.
This Information letter keeps the clients of Capital Legal Services and other interested parties abreast of information that may, to any extent, affect their activity or cater to their particular interests. The opinions and commentaries expressed in this information letter shall not be deemed as legal opinions and do not cancel the need to obtain legal advice or legal opinion on separate issues.