Future of the Nuclear Security Environment in 2015 Proceedings of a Russian-U.S. Workshop (2009) / Chapter Skim
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PUBLIC AND PRIVATE SECTOR PARTNERSHIP RELATIONSHIPS: FUNDAMENTAL ISSUES, PROMISING DIRECTIONS AND METHODS OF RUSSIAN-AMERICAN COLLABORATION IN THE FIELD OF NON-PROLIFERATION OF NUCLEAR WEAPONS
PUBLIC AND PRIVATE SECTOR PARTNERSHIP RELATIONSHIPS: FUNDAMENTAL ISSUES, PROMISING DIRECTIONS AND METHODS OF RUSSIAN-AMERICAN COLLABORATION IN THE FIELD OF NON-PROLIFERATION OF NUCLEAR WEAPONS
Pages 163-178
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From page 163... ...
In particular, the idea of considering the possibility of developing proposals for the effective interaction between government agencies and private business for the purpose of solving problems related to nuclear security in the year 2015 was expressed. Members of the Russian and American committees agreed with this approach but noted that the term "nuclear security" needs to be treated more broadly, with the understanding that it includes real security as it relates to the production and utilization of nuclear components both in the military and in the civilian sectors, as well as security in general, bearing in mind the elimination of other existing threats as well.
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PRIOR HISTORY OF THE ISSUE: CONTENT AND FAVORABLE EXPERIENCES OF PUBLIC-PRIVATE SECTOR PARTNERSHIPS The necessity of developing public-private partnerships in our country is supported by the Addresses of Russian Federation President Vladimir V Putin to the Federal Assembly of the Russian Federation, and in his speech at the XIV Congress of the Russian Union of Industrialists and Entrepreneurs (2004)
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Yakunin.231 Nonetheless, the substance and forms of public-private partnerships, as well as the means of their effective utilization within the Russian government administration and economic policy to date have not been sufficiently researched. Contemporary political science has not adequately encompassed such issues as: possible utilization in Russia of international experience relating to public-private partnerships; various implementation mechanisms for these projects; comprehensive development of regulatory and legal foundations for public-private partnerships; securing of government support and guarantees for business with respect to funds invested; a higher level of communication among all parties involved, and active public outreach in this process.232 Issues surrounding partnership relations between the public and private sectors in the context of fundamental problems, long-range trends, and tools for Russian-American collaboration in the sphere of non-proliferation of nuclear weapons have become a topic of interest thanks only to the general development of intergovernmental relationships in implementing joint programs.
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and Russian agencies; and meetings among technical experts of the working group of Russia and the United States on civilian nuclear power engineering. 233 Overcoming Impediments, p.
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Treasury Department gave a written guarantee not to place financial sanctions on the Russian bank that was to participate in the transfer of monies to the DPRK from the Bank of Macao. Overall, thanks to a rational combination of public and private capabilities, a complex problem with North Korea was resolved, and the nuclear reactor in Yongbyon was shut down.237 COLLABORATION BETWEEN THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT AND RUSSIAN ENTITIES The EBRD has had a long and fruitful collaboration with a variety of Russian entities.
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Strabag AG, Bouygues Travaux Publics S.A., Hochtief PPP Solutions GmbH, Mostotryad, OBRASCON HUARTE LAIN, S.A., OHL Concesiones, S.L., Transstroi, Bechtel International Inc., Enka Kholding B.V. and others.240 In June 2007, the Russian Federation Ministry of Economic Development and Trade and the European Bank for Reconstruction and Development signed a memorandum on financing infrastructure projects in the Russian Federation.
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MEETING BETWEEN U.S. AND RUSSIAN TECHNICAL EXPERTS FROM THE WORKING GROUP ON THE CIVILIAN NUCLEAR POWER INDUSTRY At the beginning of 2006, the Presidents of Russia and the United States launched similar initiatives (Global Infrastructure for Nuclear Power Engineering – Russia;244 Global Nuclear Energy Partnership – U.S.245)
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Zrodnikov, has been appointed deputy cochair of the Working Group on behalf of the Russian Federation on issues of coordinating scientific-technical work. In accordance with the Working Group action plan developed March 13-14, 2007, the first meeting of the subgroup of technical experts on the overall vision, transuranium fuel, fast reactors, new technologies for processing SNF and waste management, as well as the exportquality of small- and medium-capacity NPPs, and nuclear data on actinides was held in the city of Obinsk.
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Negative experience bears witness to the fact that the obstacles described herein can be overcome if partnerships operate within the environment of a strong civil society, in which the relationships function as a part of that society. The development of partnerships between the private and public sectors should therefore be built within the framework of a much broader goal, which can only be achieved on the basis of a long-term, step-by-step approach.
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Tools for Overcoming Obstacles to Public-Private Sector Collaboration The impediments examined in the preceding section can be overcome with the aid of the following mechanisms: • appropriate allocation of bureaucratic leverage and obligations • establishment of strict responsibility among project managers for concrete results • official appointment of specific project managers with a very clear definition of the scope of their obligations and responsibilities • strict reporting for each period of work • control over the activities of GRs and the results of their activities • inclusion of a broad range of scientific and social institutions to work on well grounded proposals to present to heads of state and parliamentarians on how to eliminate political obstacles to partnership relations • perfection of regulatory and legal foundations for maintaining public and private sector partnerships • development and introduction of changes to national legislation or new laws • perfection of mechanisms to develop and execute detailed Master Plans for concrete programs and specific topics • incorporation of new GR methods • development of new mechanisms of financial and economic support for ongoing projects with the participation of both the public and private sectors Each tool is worthwhile only when it is in the hands of a master. The most important organizational and managerial task here is the selection of this master and the assignment of his corresponding rights and specific responsibilities.
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Independent of this, it is critical to bring to fruition the work of implementing all mechanisms of interaction, both between the governments themselves as well as within each government to complete collaboration between the public and private entities. Mechanisms of interaction could be implemented at various levels through: • intergovernmental collaboration • work within joint coordinating committees and consulting and coordinating groups • interagency agreements • interaction within the framework of the international community • perfection of methods by which project managers work • informal conferences, seminars, meetings, and other similar events to attract independent scholars, specialists, and experts • personnel exchanges • joint selection of project topics and funding from federal monies earmarked by the governments to eliminate repercussions from the Cold War • disseminate positive experiences of interaction • joint definition of priorities within the framework of joint projects • joint decisions on the issue of defining concessions and exemptions • "special" decisions with the goal of moving work on jointly selected projects forward • designing and implementing funding algorithms (diagrams)
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Thus, it may be stated that in Russia a new form of ownership is coming into existence together with the creation of entirely new organizational structures, that of government corporate ownership.252 In the context of this paper, it would be entirely logical to suppose that their activity nearly corresponds to the topic at hand, namely, the establishment of partnerships between the public and private sectors. Project Funding Issues in the Area of Implementing Public and Private Sector Partnerships The basis for analyzing project funding issues in implementing public and private partnerships is described in Overcoming Impediments.
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It follows then that it is necessary to consider the experience in overcoming difficulties in executing work to salvage Nuclear Powered Ballistic Missile Submarines, Nuclear Powered Cruise Missile Submarines, Nuclear Powered Torpedo 254 For further information regarding the HEU Agreement, see http://www.nti.org/db/nisprofs/russia/fissmat/heudeal/heudeal.htm; accessed April 6, 2008.
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The process for finding topics for joint projects and programs might proceed as follows: • nonprofit organization "A" forms and presents a draft work program to create a technology and an experimental sample of a laser complex for deactivating salvaged metalwork, nodes, and reactor elements from nuclear power plants, nuclear submarines, and factory equipment for the nuclear fuel cycle by using laser radiation • State Monopropellant Factory proposes a project to create laser complexes to control atmospheric pollution by using physiologically active substances • open Joint Stock Company of Scientific Research Institute "S" requests the review of two programs at once: the development of a clean and safe "Resonance dynamic fission and resonance-dynamic synthesis plasma electronuclear reactor;" and a work program to create the means to protect people and equipment from the effects of ionizing radiation sources and means to effectively protecting employees at nuclear power plants without destroying the nuclear energy installation and others 2) Scientific research institutes, companies, ministries, agencies, banks and other organizations would then submit for review their joint projects and programs, along with a feasibility study demonstrating the need to fund these projects and programs with funds provided by the G8 and other organizations to reduce the nuclear threat, and to eliminate repercussions of the Cold War, and so forth.
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5. The author is in full agreement with the conclusions of Overcoming Impediments: 256 Former military personnel work for a whole series of shareholder commercial banks in Russia and are in essence doing what they used to do, working on issues of using nuclear power installations on nuclear submarines, nuclear weapons, disarmament, and providing technical safety to personnel, weaponry and military technology.
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257 Overcoming Impediments, p.
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