Stop These PPPs

New head of St. Petersburg Georgy Poltavchenko decided to stop a number of PPPs started by ex-governor Valentina Matvienko. New government believes that the concept of public-private partnership was used as a smokescreen to hide the sheer size of public spending.

First of all, development of the Orlov tunnel, so cherished and praised by Matvienko, will be closed. Initially, it was announced that the project would cost $1.6 billion but with time the figure nearly tripled to more than $4 billion. And this means, says the new vice-governor Sergey Vyazalov, ‘that this is not a good project’.

Also, construction of two bridges across the Neva River and the Palace of Arts on Vasilevsky Island will be terminated. 'We need to look at the obligations the city takes’, says Sergey Vyazalov. ‘We don’t want our future budget serve just one purpose, repayment of debt. It is better to give up something now than to have problems later.’