CIS to Develop Model Law to Facilitate Capital Investment in Large-Scale Infrastructure Projects

The Interparliamentary Assembly of the CIS Member Nations has begun drafting the Model Law on Stimulating Tradable Infrastructure Debt Instruments. A dedicated working group will hold its first meeting in September.

CIS countries face a common challenge: the need to develop infrastructure amid funding shortages and rising borrowing costs. Bank loans, budget allocations and investors’ own resources are insufficient to meet existing demand. Tradable infrastructure debt instruments could provide an effective additional source of private capital for socially significant projects.

Infrastructure bonds are securities issued to raise long-term financing for roads, railways, bridges, ports, utility networks and social facilities. As a project-finance instrument, the proceeds are allocated to a specific project, while interest and principal are repaid from the revenue generated after the facility becomes operational.

The Model Law will propose measures to attract investment into the infrastructure of CIS countries, harmonise national legislation, strengthen confidence among market participants and create a common legal framework for the free movement of capital. Each country will subsequently be able to adapt its provisions to national legislation.

Over the next three years, the IPA CIS Permanent Commission on Economy and Finance plans to develop another 19 documents. These include revised Model Laws on Electronic Signature, Electronic Commerce and Ensuring Uniformity of Measurements; a chapter of the CIS Model Tax Code on tourist tax; Recommendations on Economic Modernisation Based on Hybrid Energy and on Promoting the Use of Electric Vehicles; and the Model Law on the Sports Industry.