Public and private partnership

IPT Group services may be of interest to all PPP project participants, such as investors, public authorities and credit institutions. The services include legal and financial advisory, and searching for investors in particular.

The effectiveness of successful solutions to government and public tasks has found its way, among other things, in the partnership between the government and a private investor when private funds are raised for the purpose of performing public function based on the principles of risk sharing between partners, possible co-financing of capital and operating expenses, and enhancing the quality of provided services by engaging market competencies.

Concession agreement is the most common form of interaction between the government and the private investor.

IPT Group provides support in PPP-projects for investors, as well as public authorities and credit institutions.

Our services include:

• Road map developing in cooperation with public authorities and potential investors;
• Preparing draft PPP agreements (contracts) and providing full-range legal assistance;
• Assisting with project financing while representing interested investors or credit institutions;
• Elaborating financial and economic model (preliminary review, in-depth analysis and risk assessment);
• Structuring development projects based on PPP;
• Structuring real estate transactions based on PPP;
• Establishing a special purpose vehicle (SPV) and providing corporate support of its operations;
• Introducing unit investment instruments to PPP-based projects.

We should also note IPT Group services related to unit investment instruments introduced to PPP projects. Unit investment trust as an instrument for attracting investments allows to raise combined funds of investors held in trust by a professional trustee for a purpose of implementing various projects (including PPP-projects). Project financing by unit investment trusts is performed through:

• Acquiring securities (promissory notes/bonds) in the project’s operator (private investor);
• Issuing target loans to the project’s operator (private investor).

Thus, UIT generates income from:

• Payments under securities (including repayment);
• Interests on loans.

Such UIT income is not subject to the income tax and is allocated to develop current projects or finance any other projects (tax free refinancing).