Budget Investments in the Context of Concession Agreements

<p>This work is dedicated to the problem of effectuation of budgetary investments in the context of concession agreements.</p><p>Key words: concession agreements, budgetary investments, public-private partnership, capital investments in objects of state and municipal ownership.</p><p>To guarantee an effective usage of state and municipal ownership government more and more often uses such an instrument as Public-Private Partnership, including concession agreements between public and private partners. Realizing a concession government can also participate in financial side of the project: contract can include a condition of government co-financing of building (reconstruction, technical re-equipment) of the object. In this case budgetary investments can be realized as a method of effectuation of capital investments in the objects of state and municipal ownership.</p><p>A necessity of the order of the process of capital investments in the objects of state and municipal ownership is obvious and extensively discussed. Besides, effectuation of budgetary investments in the objects of concession agreements is characterized by its novelty of research, what makes a topic of research currently central and very essential.</p><p>The purpose of the study is to analyse the process of effectuation of capital investments in the objects of concession agreements and also to identify its problems.</p><p>According to the purpose of my work I can specify the following tasks:</p><p>- to investigate a legal regulation of budgetary investments in the objects of state and municipal ownership, to identify their nature, to give their full definition and to describe existing legislation framework;</p><p>- to analyze concession agreements as a measure of PPP and the process of financing of&nbsp; capital construction of its objects;</p><p>- to investigate world practice of concession agreements and their financing;</p><p>- to characterize existing situation in the Russian Federation connected with realization of budgetary investments, using the official statistic data;</p><p>- to investigate two real projects of concession agreements in the Russian Federation;</p><p>- to identify existing problems in this sphere and to give some recommendations.</p><p>The research subject being analyzed is the process of effectuation of budgetary investments in the object of concession agreements.</p><p>The research object is classical concession agreements.</p><p>Hypothesis of research: to increase the effectiveness of budgetary investments in the context of concession agreements it is necessary to project definite elements of international experience on Russian reality and to develop existing institutes with changing their legal framework.</p><p>To prove such a hypothesis in this work the following methods will be used: the analysis of normative legal acts, international and Russian literature, the analysis of statistic data and observation of real concession projects. The result of the research is giving some recommendations in the context of realization of budgetary investments in concessions.</p><p>The first chapter observes theoretical aspects and also legal framework of effectuation of budgetary investments in the context of concession agreements.</p><p>The second one analyses international experience, giving the example of the UK and France, and also a case &ldquo;High-speed railway Tours-Bordeaux, France&rdquo;.</p><p>The third chapter introduces the research of existing situation in the Russian Federation: there are statistic data, two cases, the problems of the topic and recommendations. &nbsp;&nbsp;</p><p>According to the results of the work, there are the following conclusions:</p><p>1) the development of budget legal framework in the field of budgetary investments effectuation will have a positive consequence for the institute of capital investments.</p><p>2) the international experience and its projection on the Russian reality can be highly useful for Russia.</p><p>3) the elevation of private investments and minimization of public ones in PPP projects can restrict private participation, the reason is not giving a definite level of guarantees. &nbsp;</p><p>4) the absence of the effective system of risks and costs evaluation, inaccurate planning, inflexible system of financing, the absence of the organization who can realize the help while realization of PPP projects and also the absence of coordination of public authorities are the main problems of concessions realization.</p><p>5) according to the results of the research, the recommendations were given.</p><p>The work can be interesting for both sides of PPP contract and also for public authorities and researchers working in this field.</p>