Corporate financing of public-private partnership projects: assessment of financial opportunities and risks

Abstract

An integral condition for the effective functioning of the economic system of the state is the constructive interaction of the state and business in order to solve common financial, economic and social problems. At the same time, an important task of the state is to create conditions for the development of corporate financing of public-private partnership. Given the importance of private financing of public-private partnership projects, the purpose of the study is to determine the activity of such investments in certain areas of social or economic infrastructure in domestic and foreign practice, as well as to investigate the financial capacity of business entities due to high capital projects, a long period of their implementation. The relevance of the study is to identify existing problems and risks that arise in the process of corporate financing of public-private partnership projects. Systematization of literature sources and approaches to solving the problem of corporate financing of public-private partnership indicates the need for further research in this area to improve the implementation of forms of partnership between government and business with the establishment of guarantees to private partners on risks associated with exchange rates, lending, parity liability of partnership participants for breach of contractual obligations. The research findings can be useful for public authorities, which should encourage private partner participation in long-term projects. However, such support should be provided in order to implement the most necessary public-private partnership projects to significantly improve the living conditions of the population in a given region, as such projects are unprofitable in the case of purely commercial funding. The research may be of interest to business entities that are potential investors in publicprivate partnership projects.