Success in implementing the Comprehensive Plan for Development of the Transport Infrastructure depends on success of each project included

29 november 2018

During the preparation of the Comprehensive Plan for Development of the Transport Infrastructure and after its passport approval, regions have submitted and continue to submit proposals to include their projects in it, mentioned Vladislav Onishchenko, Head of the Analytical Center, at the meeting of Yevgeny Ditrikh, Minister of Transport, with the representatives of regional authorities held within Transport Week 2018.

Onishchenko reminded that the Comprehensive Plan shall be a flexible tool. "During its implementation, new projects can be included in case of additional financing availability; some projects may be excluded from the Plan as well if their implementation seem to be unreasonable; other, more efficient projects will be included in the Plan to replace them," he explained and emphasized that all proposals from the regions were relevant regardless of the budget process, and the projects not included in the Plan at once would be included in the project pool being a kind of waiting list.

"A project to be included in the comprehensive Plan or the pool, shall meet certain criteria," Onishchenko said. "They were developed by the Analytical Center in cooperation with the Economic Infrastructure Center within the preparation of the project ranking methodology." The methodology provides two-stage selection. At the first stage, an express assessment is made regarding the compliance with the purposes of Decree No. 204 and the economic growth objectives, as well as the attractiveness for private investors. At the second stage, the projects are ranked on the basis of the expenses and benefits method according to 6 types of social and economic effects and the government support required.

Head of the Analytical Center stressed that preparing the proposals to include a project in the Comprehensive Plan, regions should draw attention to such aspects of the proposed projects as their scalability (the project should not only solve intraregional issues but also affect the country's social and economic development), predictability (projects should forecast the volumes of cargo and passenger traffic, the volumes and sources of their growth) and financial support (projects that rely not only on the federal budget have better chances to be included in the Plan).

Onishchenko did not agree with the opinion of some regions that the regions ranked top 20 of economic growth centers mentioned in the Spatial Development Strategy had better chances to be included in the Comprehensive Plan. "The methodology is arranged in such a way that the most high-quality and viable project gains more points, and the region not ranked top 20 can get the highest effect index. At the same time, other advantages of projects are considered, in particular, the acceleration in the economic growth rate (due to indirect effects) as well as the project maturity or its attractiveness for non-budgetary investments," he said.

Onishchenko is sure that the success in implementing the Comprehensive Plan for Development of the Transport Infrastructure depends on the success of each project included in it. Thus, all participants of the Plan should monitor regularly the compliance with their initially declared and current parameters, in particular, meeting all the implementation stages deadlines, their resources and financial support. And it is also important to estimate the expected risks during project implementation, such as non-fulfillment of obligations by the contractors, interruption in the delivery of construction materials, failure to meet the schedule and volume of financing, including non-budgetary financing, etc.