Ivanov V.Yu. Development Potential of the Public and Private Partnership of Southern Russian Regions for Implementing Infrastructural Projects
Vladimir Yu. Ivanov
Ryazan Institute (Branch) of Moscow Polytechnic University, Ryazan, Russian Federation
Abstract. The necessary condition determining the steady growth and security of economic development is full functioning and development of infrastructure.
The article emphasizes that the observed instability of real expenditures of the federal budget and territorial entities of the Russian Federation for infrastructural industries and also their uneven distribution both from the point of view of the economic sector and the region proved the need of searching non-budgetary sources for encouraging the economic development. Public and private partnership is thought to be a fundamental instrument of private investment attraction.
The article states the possibilities of participation of private firms in implementing infrastructural projects in combination with the government support when the integral powers and immanent functions of the state remain. The interests of using this instrument for the government lies in the budget expenditure reduction, increase in their efficiency, implementation of obligations of various character, in particular social ones. For private enterprises these interests are presented by governmental guarantees, the distribution of risks, possibility of participation in long-term projects and attraction of debt financing, political support of the state.
Despite the dominating role of the government participation in implementing infrastructural projects, the value of public and private partnership from the point of view of financial security increases every year.
The mutually agreed policy and coordination of joint efforts for expanding and mobilizing financial resources and implementing and modernizing infrastructural projects using these funds is expected to become a basis for the interaction of the government and private organizations.
The article analyzes the available potential of the regions of Southern Russia in the context of creating conditions for developing public and private partnership for implementing infrastructural projects. The information for this research is the systematized data of the PPP Development Center. The author presents the best examples of implementing infrastructural projects with the attraction of private investments. The paper points out the priority infrastructural projects implemented with the use of the public-private partnership mechanism, which is planned for implementing in the region as well. The assessment of the level of public and private partnership development in the regions under analysis confirmed the increasing potential of the investment attraction for implementing infrastructural projects.
On the basis of the analysis of the institutional environment development condition and legal basis, the author makes a conclusion on the decrease of the importance of these factors when determining the rating of regions of Southern Russia in the sphere of public and private partnership and an increase of such an indicator as “Experience of implementing projects”.
Key words: regional policy, sustainable economic growth, infrastructure, infrastructural projects, public and private partnership, South of Russia, development, rating.
Citation. Ivanov V.Yu., 2019. Development Potential of the Public and Private Partnership of Southern Russian Regions for Implementing Infrastructural Projects. Regionalnaya ekonomika. Yug Rossii [Regional Economy. South of Russia], vol. 7, no. 3, pp. 107-117. (in Russian). DOI: https://doi.org/10.15688/re.volsu.2019.3.11
Attachments: /5_Ivanov.pdf