Different types of projects need different types of state support

3 april 2017

"Quite often private companies are interested in non-financial support from the state rather than in getting funds from the federal or regional treasuries," Analytical Center expert Tatiana Gorovaya said during a discussion that aimed to carry out a comparative analysis of investment budget spending in Russia and abroad using the project-based approach and private investments. "Such support measures, for example, can include lower loan interest rates, tax exemptions as well as organizational measures aimed at reducing the amount of red tape businesses have to deal with."

The expert believes that because of this it would make sense to run assessments of whether alternative state regulation measures can serve the purpose better before making a decision to allocate funds to a project.

The Government plans to conduct an experiment with the federal budget whereby 5 state programs are to be reorganized around the project-management mechanisms (Education Development through 2020, Healthcare Development, Comfortable Housing and Utility Services for All Russian Citizens, Development of the Transport System and the State-funded Agriculture Support Program). This should increase the efficiency of the use of treasury funds and that of other sources of financing.

In this situation it would make sense to develop and introduce criteria for comparing and selecting projects that need state support, Ms. Gorovaya believes. It is suggested that a separate set of criteria be developed for assessing different types of projects - for healthcare facilities, education, sports and culture facilities, public buildings and residential housing, utility infrastructure facilities and environmental protection properties, for industrial sites, transport infrastructure facilities and others.

As for the use of project management methods, the expert believes that here too it would make sense to develop criteria that would allow for projects to be prioritized under financial constraints. This is important to divide projects into those that need project management and those that would be better off without project management.