Public-private partnership as a financing model for public infrastructure projects in developing countries
Abstract
In the current economic environment, many developing countries are vulnerable to their public spending after a decline in financial capacity due to a pandemic that has negatively affected their financial activities. This situation also affects their ability to support, from a financial point of view, investment activity, including infrastructure development policy. In such cases, most countries are looking for alternative financial and investment solutions in domestic or international capital markets. One of these types of financial and investment decisions operating in modern conditions is the agreement of public-private partnership. We are talking about the interaction of the public and private sector in the implementation of an infrastructure project. Consequently, countries can reach out to private partners to secure financing and infrastructure construction through publicprivate partnership (PPP) models. The purpose of the study is to highlight the specifics of the development of the public-private partnership model, which means a long-term investment of funds from public and private partners with a certain criterion, the separation of possible risks within the framework of the implementation of selected projects. The work revealed the main types of PPP using in developing countries (using the example in Russia), the amount of funds raised, the number of projects implemented, which contributes to the development of the economy as a whole and allows this study to become the most relevant direction of financing, both for Russia and for other developing countries.
About the Author
N. A. Nzenguet
Kazan (Volga region) Federal University
Russian Federation
Russian Federation
Postgraduate
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Review
For citations:
Nzenguet N.A. Public-private partnership as a financing model for public infrastructure projects in developing countries. Kazan economic vestnik. 2022;(6):33-37. (In Russ.)
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