At the same time, the Minister believes that in principle the mechanism of concession could well be utilized for operation of oil and gas pipelines. "Yet, it is unlikely to happen in the near future," Mr. Gref said.
According to him, for the time being, the Government decided to use the mechanism of concession (provision of long-term contracts granting private businesses the right to operate state assets that are not to be privatized by statute) only in the transport, public utilities and social sectors.
"Such assets may, for example, be hospitals or any other facilities, including abandoned ones, which could, in principle, yield profit, and which have a potential of attracting private investment," Mr. Gref said.
The Government, at its recent meeting, instructed the Economic Development and Trade Ministry to work out an appropriate concession-granting mechanism that might be effectively applied in a number of industries.
In Gherman Gref's opinion, the state should use the resources of the Stabilization Fund for making investment in the projects promoting development of economic infrastructure.
"The resources of the Stabilization Fund currently totaling over 50 billion rubles ($1 is 29.22 rubles) should be used for investing into infrastructure projects," he said.
According to him, the Transportation Ministry, for example, has prepared four such projects already. Similar projects have also been worked out by the Communications Ministry, Industry and Energy Ministry, Natural Resources Ministry and Health and Social Development Ministry. The Government will thoroughly study each of these projects, Mr. Gref pointed out.
As an illustration of a viable infrastructure project, Gherman Gref referred to construction of a network of major air transit hubs meant to facilitate international long-distance air traffic. Tentatively, 9 to 11 such hubs can be built in Russia with a potential of yielding up to 20 billion euros in annual profits.
These hubs, like other infrastructure projects, are going to be built by joint ventures involving both state and private entities. The state, according to Mr. Gref, will build runways and set up traffic control services. All the other facilities are to be built by private investors.
"This will give a powerful impetus to development of business in general and boost development of all other means of transport," Gherman Gref pointed out.
