During the Eastern Economic Forum (EEF), Vnesheconombank and the government of the Sakha (Yakutia) Republic executed an agreement on social impact bonds (SIB) to deliver social outcomes.
The document was signed by Vnesheconombank’s Deputy Chairman and Member of the Management Board Svetlana Yachevskaya, and Acting Chairman of the Government of the Sakha (Yakutia) Republic Vladimir Solodov.
“Linking investors’ income to the delivery of measured social outcomes, social impact bonds are a possible option where government cannot accomplish its objectives with conventional methods. Consequently, social service financing gives way to payment for social effects,” said Svetlana Yachevskaya.
She added that VEB together with the government is prepared to calculate required social outcomes and develop an economic and financial model for SIB projects.
A project aiming to raise the quality of education at small schools in one of the Republic’s municipalities has been designated by VEB and the government of the Sakha (Yakutia) Republic as a pilot project. There are plans to build and introduce at schools a new organisational, management and financial model comprising the elements of digital educational environment. Digitalisation is expected to increase the efficiency of schools through the introduction of automated systems, consolidation of individual administrative and managerial tasks, easing the reporting burden on teachers, and on-line access to quality educational content. The project life is estimated at three to five years.
The intended outcome of the project is to improve pupils’ educational results in terms of the Basic State Examination and Unified State Examination. By way of additional outcomes, the project is expected to help cut expenses per pupil due to a streamlined organisational, management and financial model of school.
Vnesheconombank and the regional government are also prepared to develop a SIB project in social care to ensure specialised home care and attendance for the elderly and disabled where long-term in-patient care facilities are limited. It will enable identification of the need for care, its standartisation, and promotion of home care by engaging families and training specialists. As a result, it will ease the burden on in-patient facilities and provide the needy with care in familiar surroundings.
The aim of the agreement is to boost social and economic development in the Sakha (Yakutia) Republic and deliver on the Russian President’s May Decree ‘On National Goals and Strategic Objectives for Russia’s Development to 2024.’
The agreement is executed in furtherance of the Memorandum on Cooperation signed between Vnesheconombank, the government of the Sakha (Yakutia) Republic, and an autonomous non-profit organization, Agency for Strategic Initiatives to Promote New Projects.