The State Duma discussed a new mechanism for social investment in small towns

The State Duma discussed the bill "On Social Infrastructure Contracts", which introduces a new financial instrument to finance the social development of small towns, Lenta.ru reported.

The bill was developed as part of the fulfillment of the instruction of the head of state following the results of the Eastern Economic Forum-2024. It was supported by both leading development institutions and representatives of big business who took part in the discussion.

The draft law introduces the concept of a "social infrastructure contract" - a new financing mechanism that implies partnership between private investors and the authorities in the construction of social infrastructure facilities. We are talking about schools, hospitals, sports and health centers, as well as cultural facilities at the expense of business investments with subsequent transfer to regional ownership. In turn, the constituent entities of the Russian Federation should stimulate business through incentives, compensation and other support measures.

"Rusal Group and En+, as well as all socially responsible business, are ready to further develop support cities and settlements and support the approaches voiced by the President of the Russian Federation. A mutually beneficial mechanism for the creation of social facilities in such cities will allow to reinvest the compensation received by business in the creation of new social facilities for the regions in an accelerated manner," said Elena Bezdenezhnykh, Vice President of Rusal, during the discussion.

According to the discussion participants, the new draft law is aimed at strategic partnership between the state and business for the development of regional social infrastructure. It is part of a systemic effort to ensure accelerated growth of small and medium-sized Russian cities to address the problems of outflow and lack of funds for their development.