Bill on the land provision procedure for public–private partnership has passed through the second reading stage in parliament

Legislative Assembly deputies considered St. Petersburg’s bill «On the land plots provision, owned by St. Petersburg, given compliance with the concession agreements, public-private partnership agreements and amendments to individual St. Petersburg’s laws».

The bill provides the land plots provision procedure change to a concessionaire, private partner, including the rent amount determination procedure for land plots.

The initiative, proposed within the current bill, is aimed at the interaction improvement with investors through concessions and public-private partnerships, according to Roman Golovanov, St. Petersburg Investment Committee chairman. «The concessionaire needs a transparent payment mechanism within the partnership with the city», Roman Golovanov said. — «I’m sure the procedure proposed contributes to involve more sites and buildings to the investment turnover, which will result in more interesting new projects emergence in our city».

A land lease agreement is signed with the concessionaire and private partner for the entire concession agreement or public–private partnership agreement duration, according to the bill project. It worth mentioning that the annual land use rent by either concessionaire or private partner is 1.5% of the cadastral value, regardless the stage the agreement is on.