A Financial Expediency Estimate of Forming a Public-Private Partnership (on the Example of Developing a Plant for Processing Municipal Solid Waste)

The work is devoted to the application of a game-theoretic approach to assess the feasibility of forming public-private partnerships in the field of utilization of municipal solid waste. Subject of work – issues related to the assessment of the appropriateness of forming a concession agreement concluded by the regional operator and the executive and administrative body of the municipality. The object of master thesis is the executive and administrative body of the municipality, a financial company and a regional operator in the field of utilization, disposal, collection and removal of municipal solid waste. The work belongs to the class of studies intended to create an apparatus for supporting the adoption of investment decisions by the administration of the municipality. Using the approach used in the works of other authors (Aleskerov F.T., Belenky A.S., Vasiliev S.N., 2014; Belenky A.S. (2014); Mordovets A.V. (2017)), the author conducts a case study to illustrate the method, as well as compiling program code capable of becoming a software that gives organizers, lenders and project executives a tool to analyze the project not only in the solid waste, but also in other existing and promising sectors of the economy that are yet to emerge. Using a stream of generated data to study saddle points, which are the answer to the question of finding for the formulated Nash equilibrium problem, which is the Pareto optimum as well. After checking the solution to the problem of the distribution of financing between the parties to the project, a data series is used, the basis of which is the available data on the concluded concession between the municipality and the regional operator for solid municipal waste management. Using standard software, Pareto-optimal solutions are found, from which the only point that is proposed by the author as an answer to the question of which terms of the contract allow the parties to conclude the most stable agreement, the violation of which, at least, will not benefit the party, is identified adopting a strategy of opportunistic behavior towards the rest of the contract. The author also offers a model that allows, with the least risk to the environment, to place different types of household waste, which may be applicable in the future to decision makers in the field of environmental policy at the level of the subject of the Russian Federation. It can be concluded that the process of public procurement of goods, works, services adopted in the Russian Federation can be replaced by a centralized management mechanism by concluding a public-private partnership / municipal-private partnership agreement if there is an assessment of the appropriateness of concluding agreements of this kind, but not requiring additional parties to make an investment decision in the development and implementation of a large-scale infrastructure project.