The document discusses priorities and development plans for Moscow's social sector, including education, healthcare, sports, culture, and urban environment. It notes that Moscow's 2014 budget allocates 56% of funding to the social sector. Specific initiatives discussed include expanding private healthcare through public-private partnerships; constructing sports infrastructure for the 2018 World Cup; and developing mechanisms like land leasing and concessions to increase private investment in preschools and schools. The goal is to improve services, increase quality and choice, and develop the private education sector through these partnerships.
2. Priorities in Social Sector
Education
Sport
Healthcare
2 | Development of Moscow Social Sector | 2013
Culture &
Urban environment
3. Moscow Budget is Society Oriented
Moscow Budget for 2014
Budget financing, B USD
49.2
49.4
48.6
44%
44%
49%
45%
56%
Social Sector Budget Financing,
M USD
49.4
56%
51%
55%
2012
2013
2014
2015
30,000
25,378
8,030
47.9
44%
Other
investment
56% Social sector*
2016
40%
20,000
6,156
100%
24%
6,156
10,000
24%
1,841
7%
1,183
5%
0
Total
Social
support
Education
Health
care
*Social sector include: Social support, Healthcare, Education, Culture, Tourism & Entertainment, Sport
3 | Development of Moscow Social Sector | 2013
Culture&
Tourism
Sport
4. Healthcare
Developing private health care including public-private partnerships
Import substitution of medical services
Increasing accessibility to public and specialized medical facilities
Medical care within walking distance
1st PPP project in healthcare sector
29k sq.m. of reconstruction area
23 polyclinics with $650m of
investments
6 fixed facilities with $200m of
investments
+46 units constructed with
private investments
$145m of investments
$32m concession fee
20142016
#63 City
Hospital
1.5 hectares of land
$80m of investments
130 beds
20-30% of services provided to patients
with mandatory health insurance
4.5-year lease
Leasing benefits for 20 years
Cardiology
Center
3 operating rooms
4 laboratories
25-30% of service by compulsory
health insurance
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Doctor is
Nearby
1 Rub per 1 sq.m.
Reconstruction and equipping
medical offices
11 premises were conveyed to investors
18 premises are ready for auction
Overall 100 facilities
5. Sports
Improving accessibility and attractiveness of the city’s sports infrastructure
Hosting the 2018 football World Cup
Constructing sports infrastructure
Developing tourist infrastructure
City Program for Sport, 2013-2016 years
~80
Auctions were held to rent 15 land plots following the
construction of sport and recreation centers. Auction is
announced for 10 units. 60 land plots is going to be auctioned
Sport and recreation
centers
7 cycle tracks
11 football fields
1 skiing resort
Football arenas with sport, hotel and other complexes
Luzhniki
Size of the stadium, kilo seats
Investments, billion of USD
Spartak
CSKA
Dynamo
81
44
30
45
3,6
0,5
0,35
1,5
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6. Culture & Urban Environment
Developing of public areas
Architecture and historic preservation
Balanced city-planning
Walking accessibility
Libraries – $350m
Cultural centers - $65m
Theatres and concert halls – $1,2b
Exterior lightening - $625m
Footpath area - $110m (2014y only)
Cinema – 2 lots with 10 theatres and
$154m initial price till the end of 2013
2014-2016
program
for
developing
Culture
sector
300 meters from Kremlin
13 hectares of land
hotel with 340 rooms
$429m of investments, including
$146m for hotel
Largest exhibition complex in
Russia
237 hectares of total area
480k sq. m. of constructed area
Park
Zaryadye
Moscow
river
Outstanding
projects
All-Russia
Exhibition
Center
361 hectares botanical garden
615 buildings
45 architectural landmarks
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Nagatinsk
Poyma
Park
The project covers embankments with
10% of territory of old Moscow
It includes construction of roads,
bridges, developing recreation zones
Peninsula park
94.8 hectares
298,6k sq. m. of commercial
real estate
$900m of investment
7. Education in Moscow
1. Substantial market for education: 15m people in Greater Moscow.
Annual wage rate $19.6k per capita
2. Highly educated families with high expectations regarding
their children’s level of education
3. 96% of educational services are offered by public sector
4. Insufficient selection and availability/affordability of services
by private organizations (sociological poll of foreign specialists)
5. High cost of services of private organizations
6. Low competition and weak satisfaction of demand
Moscow education system1
No. of institutions
No. of students, thous.
Kindergartens
1 851
423
General schools
1 457
825
Colleges
101
104
Universities
256
1 068
1Moscow
Department of Education
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8. Priorities in Moscow Education
City Program for Education,
Guiding Principles
$983m of investments:
Reducing the deficit of educational services
60 preschools
16 schools
23 outbuilding of elementary
school
+56 preschools & 29 schools
constructed with private
investments
Developing the private sector of the
education system
2014-2016 years
Promoting competition in the industry
Increasing the quality of, and demand for,
education
Building and remodeling schools,
kindergartens and other institutions,
including via public-private partnerships
Creating full-cycle educational facilities
Arranging schools in accordance with
international standards
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9. Preschool Education: Mechanisms
Mechanisms for developing
pre-school education
1
3
2
Preferential
Premises
Rent
Land Plot
Rent
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Concession
10. Preschool Education: Facilities Rent
49 years
Annual rent rate: 1 ruble per sq m
Rental of premises for
Opportunities
•
Enrollment of children on a commercial basis
•
$1.3k in budget financing per child (5-7 year) annually
•
Receipt of secured loan under lease contract at MIA bank
(special program)
Terms:
• Reconstruction in no more than 6 months
• Capital repair in no more than 3 years
Current situation, 2013
Auctions
held
Auctions
announced
Preparation
for auction
9
13
18
10 | Development of Moscow Social Sector | 2013
11. Preschool Education: Land Rent
Lease of a land plot to construct an educational facility
Opportunities
•
Enrollment of children on a commercial basis
•
Preparation of urban land development plan at time of auction
•
$1.3k in budget financing per child (5-7 year) annually
•
Annual rent rate: 0.05% of cadastral value
Terms:
•
Completion of construction within 5 years
Current situation
Auctions
held
Preparation
for auction
3
2
11 | Development of Moscow Social Sector | 2013
12. Preschool Education: Build-operate-transfer PPP
City:
Investor:
•
Provides land plot
•
Constructs building
•
Licenses investor
•
•
Buys service for people
on waiting list
Renders pre-school services,
including for people on waiting list
•
Transfers building to the city
$5.2k in public financing per child sent by the city from the waiting list
$1.3k in public financing per child enrolling on a commercial basis
1.5 years of construction
15 years of operation
>25% of children sent by the city
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13. Schools
91.2% of general educational services are offered by state institutions
30% of students pursue extra-curricular activities
30% of school students visit sports clubs
or practice fitness
50% of high school students take paid courses or study with tutors
$2k per student in budget financing for accredited private schools
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14. Schools: Mechanisms
Rental of premises
• A similar program as for preschools is being developed for
schools:
• Rental of premises for 49 years at rate of 1 ruble per sq m
• 4 facilities are being prepared for auctions
Demand from foreign communities and Russian
families for education provided in line with global
standards is growing. It’s recognized by many
international universities. Average student fee is
$20k per year. Currently 10 schools provided
International Baccalaureate in Moscow.
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15. New Moscow
• Creation of 1m jobs planned
• 9,700 children are in queue for pre-school in 2013
• +100 kindergartens will be built in the next 3 years, 50% by
private investors
• Large-scale plan to create educational clusters,
including placement of facilities for Moscow Institute
of Steel and Alloys on 60 hectares in Kommunarka
Resource: Moscow City Government
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16. Thank you!
Leonid Kostroma
Moscow City Government
Moscow City Investment Agency
Strategy Deputy CEO
KostromaLV@mos.ru
www.mosinvest.mos.ru
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