Public private partnership

Financing of construction and repair of the regional and local roads in Russia is provided from the regional road funds, which are formed at the expense of the transport tax, the main part of fuel excise duties and subsidies of the federal budget. According to some experts, the total amount of budget expenditures for construction, reconstruction, repair and maintenance of the road network in the regions of Russia is covered only by 25% of the taxpayers' funds in Moscow and by 60-70% – in the regions.

The limited possibilities of budget financing, necessary for development of the road sector are the main prerequisite for the dissemination of alternative instruments for raising funds for the creation of transport infrastructure. Public private partnership (PPP) contributes to raising funds in development of the street road network without increasing budget expenditures. The implementation of PPP projects allows to improve the quality of services and reduce costs during the operation of infrastructure facilities.