ALEXANDER DERYUGIN: ONE OF THE MAIN REASONS OF “UNCOMPLETED PROJECTS” IS HIGH LEVEL OF BUREAUCRACY
Experts of the Gaidar Institute commented to “Izvestia” on the situation related to mothballed state projects discovered by Accounts Chamber.der
Volume of mothballed budget construction amounted to Rb 260 billion in Russia. These data have been provided by Accounts Chamber according to results of analysis of uncompleted projects made known to “Izvestia”
According to Alexander Deryugin, Researcher of Monetary Policy Laboratory, one of the main reasons of high level of “uncompleted projects” is excessive bureaucracy and prolixity of agreement procedures required to build any facility. The Expert says that plenty of certificates and conclusions granted by different government entities are required and it will take months to get them. Besides, it turns out in the course of realization that this project will cost much more than declared in estimate documents and additional financing is required to continue the construction. Alexander Deryugin concluded that it is always extremely difficult and long to amend the budget.
Aleksey Vedev, Leading Researcher of the Gaidar Institute, added that another reason is a low competitiveness in budget tenders. According to author, state owned companies win these tenders but their efficiency and way of performance are lower, as a rule, than of private enterprises.
According to Alexander Deryugin, Researcher of Monetary Policy Laboratory, one of the main reasons of high level of “uncompleted projects” is excessive bureaucracy and prolixity of agreement procedures required to build any facility. The Expert says that plenty of certificates and conclusions granted by different government entities are required and it will take months to get them. Besides, it turns out in the course of realization that this project will cost much more than declared in estimate documents and additional financing is required to continue the construction. Alexander Deryugin concluded that it is always extremely difficult and long to amend the budget.
Aleksey Vedev, Leading Researcher of the Gaidar Institute, added that another reason is a low competitiveness in budget tenders. According to author, state owned companies win these tenders but their efficiency and way of performance are lower, as a rule, than of private enterprises.