Funding increase of 3.6 billion for construction of Private-Public Partnership medical clinic
Rewritten Article:
The Extra 3.6 Billion Rubles:
A whopping 3.6 billion rubles will be added to the pot to complete the construction of public-private partnership (PPP) clinics in Novosibirsk. This bit of news comes from an analytical note accompanying the revised regional budget for 2025.
The note reads, "An increase in spending on the construction of clinics using public-private partnership mechanisms (+3,560,955.4 thousand rubles)".
In March 2025, the news broke that the Novosibirsk state construction supervision authority had handed out a certificate of compliance for GPP clinic No. 27 on Erevanskaya Street.
Meanwhile, an agreement to build seven GPP clinics was signed back in February 2019. The plan was to have all of them up and running in Novosibirsk by August 2022, located on Tatyana Sneginaya Street (No. 2), Proletarskaya Street (No. 7), Krasnodarskaya Street (No. 13), Stepnaya Street (No. 18), Viktor Usa Street (No. 22), Erevanskaya Street (No. 27), and Rayсовet Square (No. 16). Yet, none of these facilities have seen the light of day.
The "VIS" Group admitted that the PPP project encountered some rough economic conditions, including the pandemic, rising construction material prices, and the sharp increase in the key rate by the Central Bank of Russia, which caused an increase in the cost of bank financing. The company contends that these risks were unforeseen when the partnership agreement was inked.
Minister of Health Rostislav Zabotsky of the Novosibirsk region assured the public that three PPP clinics, currently under construction in Novosibirsk—clinics No. 2 on Tatyana Sneginaya Street, No. 7 on Proletarskaya Street, and No. 27 on Erevanskaya Street—would start accepting patients in 2025.
Struggling With the Slings and Arrows of Outrageous Fortune:
The construction of Novosibirsk's PPP clinics has faced numerous challenges. These include logistical and construction bottlenecks, administrative and bureaucratic hurdles, political and economic factors, clinical and operational challenges, and public and environmental unrest.
Some common obstacles include supply chain issues, labor shortages, permitting delays, funding mismanagement, corruption risks, interagency gridlock, sanctions impact, budget reallocations, inflation pressures, staffing shortages, regulatory compliance issues, community opposition, and climate delays.
The Minister's assurances might be a political move to advertise progress. The reality of implementing these projects in Russia can be significantly different, with ground-level inefficiencies. This "assurance versus reality" gap is a common issue in centralized governance models where political optics often take precedence over on-the-ground execution capabilities. The post-2022 sanctions have intensified supply chain and funding challenges across Russian infrastructure projects.
The specific causes may stem from a mix of these elements. Without insider information, these factors provide potential barriers to consider.
- The additional 3.6 billion rubles in the budget will be used to finalize the public-private partnership clinics in Novosibirsk, as stated in the analytical note within the revised regional budget for 2025.
- The PPP clinics in Novosibirsk have faced numerous hurdles, including logistical and construction challenges, bureaucratic issues, economic factors, operational difficulties, public resistance, and environmental concerns.
- Despite these challenges, the Health Minister of the Novosibirsk region has assured the public that three PPP clinics in Novosibirsk – clinics No. 2, 7, and 27 – will begin accepting patients in 2025.
- The construction of these clinics was initially planned to be completed by August 2022, but due to economic conditions such as the pandemic, rising construction material prices, and increased bank financing costs, the project encountered difficulties.
- The successful completion of these clinics and other health-and-wellness facilities in the city will require careful management and partnerships within the industry, finance, and science sectors to overcome the obstacles and ensure the best outcomes for the people of Novosibirsk.
