ORGANIZATIONAL AND ECONOMIC ASPECTS OF JUSTIFICATION OF CONCESSIONS IN ROAD CONSTRUCTION

Keywords: concession, public-private partnership, road construction, road construction projects

Abstract

The article is devoted to topical issues of characterization of organizational and economic aspects of substantiation of concessions in road construction. The factors influencing the successful implementation of road construction projects on the basis of concession are analyzed and systematized. Among others, a number of basic principles are revealed, among which are: transparency and accountability; competitiveness; risk transfer; ensuring the competitiveness of services, the implementation of which is transferred from the public sector to the private sector; innovative development; clarity and predictability; continuity of service provision; equality of concession participants; stability and flexibility of contract terms; taking into account the specifics of the object of the concession project; economic and financial stability; non-interference of the state in the economic activity of a private partner; etc. The world experience of using concessions as a form of public-private partnership is studied. Trends in project activity in the European Union are studied. The main factors of concession success in road construction through methods and forms of state supervision over the partnership between the state and private investors are revealed. The state is characterized as a body that forms the institutional environment, creates legal and organizational preconditions for the process of establishing partnerships, formulates strategies and principles for establishing business partnerships with the government and society. To ensure the success of projects under the concession system, the legal aspects and preconditions created by the state for the implementation of these projects are highlighted. The main stages of the project life cycle, which must be taken into account to ensure the effective and successful implementation of projects on the basis of concessions in road construction, are revealed and characterized. The preconditions for the success of public-private partnership in the development of transport infrastructure and projects based on concessions in particular are highlighted. The main aspects and criteria for assessing the state's readiness to implement road construction projects on the basis of concessions are revealed, among which is the presence of political support for partnership between the state and business by the government; the government's ability to manage concessions; the government's ability to manage the PPP process (completion); organization of implementation (realization) of projects.

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Published
2021-08-31
How to Cite
Yurchenko, A. (2021). ORGANIZATIONAL AND ECONOMIC ASPECTS OF JUSTIFICATION OF CONCESSIONS IN ROAD CONSTRUCTION. Economy and Society, (30). https://doi.org/10.32782/2524-0072/2021-30-34
Section
ECONOMICS