By Alexey Dorofeev United Nations University Office at the UN, New York

1. Public-Private Partnerships in the Global Perspective: Outstanding Methods, Constraints and ChallengesA Comparative Study of Partnerships between Public and Private Sectors in the United States (Kansas City, Missouri) and Russia (St. Petersburg) By Alexey Dorofeev United Nations University Office at the UN, New York The Hauptman School for Public Affairs, Park University

2. Summary • Outstanding administrative methods utilized by Capital Improvements Management Office (CIMO) in Kansas City and the Government of St. Petersburg • Administrative Constraints • Implications to Public Administrators

3. Why Kansas City and St. Petersburg? • Kansas City Urban Redevelopment Project = one of the most innovative PPP projects in the United States • Infrastructure Projects in St. Petersburg = enormous scale of projects and direct financial support from the state

4. Kansas City, Missouri Urban Redevelopment Project • $ 850 mln Power & Light District • Partnership of Capital Improvements Management Office (CIMO) and the Cordish Company (major U.S. real estate developer) • Management Team was comprised of employees from MWH Americas (a comprehensive management consulting firm), Burn & Engineering (architecture and construction consulting solutions firm) and City employees

5. Kansas City, Missouri Urban Redevelopment Project (Results) • Revitalized Downtown Kansas City • A broader array of services provided by the private sector • A stronger sense of a community

6. St. Petersburg, Russia Infrastructure Development Projects • Orlovski Tunnel • The Western Speed Diameter (WSD) • Nadzemni Express • Pulkovo Airport • Approx. $ 1 Billion Each

7. Outstanding Methods Kansas City, Missouri, U.S. St. Petersburg, Russia Direct Allocation of Funds from the Investment Fund of the Russian Federation (IFRF) Innovative Legislation Political Support from the Central Government The World Bank Group • Central Administrative Role of the Capital Improvements Management Office (CIMO) • Tax Increment Financing (TIF)

8. Constraints and Challenges Kansas City, Missouri, U.S. St. Petersburg, Russia Weakness of the legal framework High risks associated with reliance on state funding Lack of public officials’ expertise with managing PPP projects Cost assessment risks • Fiscal Administration of TIF • Significant risks related to future revenue forecasts and project’s over cost

9. Lessons Learned Kansas City, Missouri, U.S. St. Petersburg, Russia A stronger legal framework is needed. More substantial support from the state is key to successful implementation of the projects. • An accurate estimate of project’s costs is important. • Tax burden should be fairly distributed among citizens.

10. Recommendations • Each PPP project is unique and requires an individual approach. • A special centralized public entity, akin to CIMO in Kansas City, is a great way run and oversee the projects. • Tax subsidies are an effective tool to attract private businesses to participate. • In developing countries, such organizations as the World Bank Group or the United Nations Development Programme should be utilized as a great source of advice and expertise.

11. Questions?

12. Thank you.