FINANCIAL ASPECTS OF PUBLIC AND PRIVATE PARTNERSHIP
| Autor: | S. Frolov, R. Yeremeychuk |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2013 |
| Předmět: | |
| Zdroj: | Економіка розвитку, Vol 4, Iss 68, Pp 18-22 (2013) |
| ISSN: | 2304-6155 1683-1942 |
| Popis: | Today, the public-private partnership (PPP) provides the most versatile mechanism of realizing private business initiatives with maintaining control and regulatory functions of the state in socially important sectors. However, the existing socioeconomic conditions of PPP projects may not always be financially attractive to private investors because of a long period of realization, limited profitability, high market risks of social services etc., which bring about the necessity for researching sources, mechanisms and other aspects of financial support of the public-private partnership. Despite a great interest of the state and business, the problem of developing tools and mechanisms for financing PPP projects has not been properly covered in the scientific literature. Hence, there is a need to study the financial aspects of the PPP and develop mechanisms for their implementation. The study examined the PPP forms by the degree of involvement of the private and public sectors and in accordance with the level of risk taken on by the parties. However, regardless of the source of financing, projects are funded through a combination of debt and equity instruments, whose types and nature are discussed in more detail in the article. The capital structure of the project is not static, and different sources can be used at various stages of the project cycle. Characteristics and "risk – return" ratio were identified depending on the nature of requirements for assets, and a number of factors affecting the optimal level of debt and equity financing of the project and sources of finance were described. Financing a public-private partnership is one of the most important problems of social development requiring the development, implementation and operation of the instruments, institutions and mechanisms that can make such projects eligible for both public, and private funding. |
| Databáze: | OpenAIRE |
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