The Government should provide the public with the opportunity to invest their funds in investment projects with real benefits

2 june 2015 | Rossiyskaya Biznes-Gazeta

According to a study of the audit firm KPMG, the transport infrastructure construction market in Russia will experience chronic underfunding in next two or three years, especially when compared to 2013-2014. The reduction of cash injections from the Government may relate in the first place to major projects that are the target for leading market players. Meanwhile, the global practice shows that in times of crisis, particularly burdened by the geopolitical situation and the devaluation of the national currency, it is logical and beneficial to invest just in infrastructure projects.

Mikhail Nizov
Mikhail Nizov
Department for Sectors of Economy

Mikhail Nizov, an expert of the Department of Sectors of Economy of the Analytical Center, commented on the situation to "Rossiyskaya Biznes-Gazeta". "Life has repeatedly shown the long-term benefits of implementing infrastructure projects, as they ensure the reduction of unemployment among various segments of the population, as well as lay down the necessary capacity for more intensive development of the economy during the subsequent recovery," said the expert.

However, Mikhail Nizov allays fears: projects, declared in the state program "Development of Transport System" will be hardly scrapped. "Almost 100% of budget investments in accordance with the basic activities of the state program are directed at infrastructure. However, their volumes should be adjusted annually according to changes in priorities of activities, the discipline of development of dedicated resources, depending on the implementation of other activities, including other state programs. We are talking about optimizing public investments, which should be carried out regularly in the light of the performance of target indicators. In times of economic recovery and increase of financial opportunities there are new projects, in times of economic slowdown and reduction of the amount of their financial capacity their amount is reduced. At the same time funding for ongoing projects is not stopped, but is optimized more carefully," said the expert.

Among projects for which funding is unlikely to be subject to sequestration, Michael Nizov named construction of a bridge across the Kerch Strait, the high-speed network Moscow - Kazan, sports and transport facilities for the World Cup 2018. "The High-speed network Moscow - Kazan is an important project in the development of international transport corridors, passing through the territory of Russia among the countries of Asia and Europe, and has the potential of further extension to Vladivostok or Beijing. Its implementation will help to attract global traffic flows, improve the investment attractiveness and realize the benefits of the geographical position of the country for speed up of socio-economic development and integration into the world economy," said the expert.

Mr. Nizov suggested greater use of opportunities and resources of the potential third party of major infrastructure projects, for which they, in fact, exist - citizens. "The state simply must provide the public with an opportunity to invest in investment projects with real  benefits. In the meantime, economy needs investments, which are expected from "abroad", and citizens, in terms of unpredictable fluctuations of the national currency and the banking leapfrog admitted, hide their money in a "stocking" and rush in search of investments for their safety and possible augmentation," considers the expert.