as a tool for Developing Social Infrastructure
SECOND EDITION
by Maria Y. Beliakova, PhD
Head of the Department of Sport and tourism management
and
Dr. Tatiana V. Yurieva
Department of Sport and tourism
Russian Presidential Academy of National Economy
and Public Administration (RANEPA)
Moscow, Russia
Abstract
The main goal of Public-Private Partnership (PPP) projects in the creation, reconstruction and operation of social infrastructure facilities is to create conditions for the development of human capital, a healthy lifestyle, comfortable living, etc. The sectoral structure is examined and perspective directions of PPP projects in social infrastructure were revealed. The main organizational and legal forms of PPP projects in social infrastructure are researched (Concession, PPP agreements, quasi-PPP etc.). The goals, interests and benefits of the project agreement participants are analyzed.
The conclusion is made about highly risky nature of PPP projects. One of the most important issues in the process of developing and implementing a PPP project is the identification and distribution of risks and responsibilities between public and private partners, since risks can lead to changes in the project parameters and conditions for its implementation. The classification of PPP project risks in social infrastructure is carried out typical for all investment projects; typical for PPP projects; typical for projects in social infrastructure. It is shown that public and private partners use different methods of risk assessments of PPP projects in the social sphere. The choice of the right decision to participate in the project is largely determined based on the risk analysis of the PPP project.
It is recommended to use the “project finance” model of attracting financial resources more widely when implementing PPP projects in social infrastructure.
The main directions of effective state policy that stimulate the development of PPP projects in the social infrastructure are proposed.
Keywords: public-private partnership projects, infrastructure projects, social infrastructure.
JEL code: G11, O22
Introduction
New economic and social challenges impose special requirements on employees in various sectors of the economy. Priority is given to such characteristics as professional competence, the ability to create innovations, and effectively manage them in a changing environment. All this defines a qualitatively new approach to human capital as the most important factor of sustainable development. In turn, the development of human capital associated with the level of education and upbringing, labor qualifications, health, mobility is largely determined by the quality of goods and services provided by social sectors (education, health, culture, physical culture and sports, tourism, social security, etc.). At the same time, the development of the social sphere is impossible without the availability of infrastructure facilities that meets modern standards.
The provision of social public goods and services to the population is a state function and requires a large amount of investments. An increase in their number and quality characteristics requires either an increase in government spending, or the use of new mechanisms to attract private investments in the social sector. In conditions of limited public resources, the mechanism of public-private partnership (PPP) becomes an additional source of financing of social infrastructure.
Scientists actively study the principles and forms of PPP in the modern economy. The greatest contribution to the study of these issues was made by scientists such as A.A. Alpatov, A.B. Atkinson, J. Delmon, E. Farquharson, A. Hirschman, V. A. Kabashkin, V.V. Knaus, V.V. Maximov, M. Porter, O. Solvell, J. E. Stiglitz, V. G. Warnavsky, E. R. Yescombe, A. G. Zeldner and others. We should note that the degree of elaboration of PPP issues in General is quite high. The works of these researchers reflect the theoretical aspects, organizational forms, and practical technologies of PPP implementation. However, the special role of social public goods and services, and the specifics of demand formation for them, make it necessary to clarify the mechanism for implementing projects aimed at creating, reconstructing and maintaining social infrastructure facilities based on PPP principles. All this determines the relevance, purpose and objectives of this study. The main methods of its implementation are analysis and synthesis, logical modeling, economic and statistical analysis (grouping, classification, construction of dynamics series, graphic, comparative analysis).
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Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English. Original publication acknowledged; authors retain copyright. This paper was originally presented at the 9th Scientific Conference on Project Management in the Baltic States at the University of Latvia in April 2020. It is republished here with the permission of the author and conference organizers.
How to cite this paper: Beliakova, M. Y. and Yurieva, T. V. (2020); Public-Private Partnership Projects as a tool for Developing Social Infrastructure; presented at the 9th Scientific Conference on Project Management in the Baltic States, University of Latvia, April 2020; republished in the PM World Journal, Vol. IX, Issue X, October. Available online at https://pmworldlibrary.net/wp-content/uploads/2020/09/pmwj98-Oct2020-Beliakova-Yurieva-public-private-partnership-projects-for-social-infrastructure.pdf
About the Authors
Maria Yurievna Beliakova, PhD
Moscow, Russia
Born in Moscow (Russia). PhD Investments/Economics (The Institute of Management, Investment and Innovation department, Plekhanov Russian Academy of Economics). Mariia Beliakova graduated from Plekhanov Russian Academy of Economics (Engineering & Economics Faculty).
Mariia Beliakova worked at Plekhanov Russian Academy of Economics from 2003-2012. Since 2012 worked in the Russian Presidential Academy of National Economy and Public Administration (RANEPA) as a Vice-dean of the Faculty of Sport and Tourism management (Institute of sectoral management). Since 2019 working as Director of the Research Center – Faculty of Sport and Tourism management, Institute of finance and sustainability development. (RANEPA).
ISOH member.Team Leader for the establishment of the Olympic Scientific Studies and Research Center, in order to develop and implement digital information platforms, dedicated to the Olympic movement.
Author of monographs, textbooks and more than 50 scientific articles on Economics and Management. Participant of more than 10 international scientific and practical conferences.
Head of scientific work of undergraduates, post-graduate students. She participated in the implementation of projects as a manager and executor, and in expert and analytical activities in the bodies of state and municipal administration.
Associate Professor Maria Beliakova can be contacted at mbeliakova@ranepa.ru or web: https://www.ranepa.ru
Dr. Tatiana Vladimirovna Yurieva
Moscow, Russia
Born in Moscow (Russia). Doctor of Economics, Professor Yurieva graduated from Moscow State University named M. V. Lomonosov (faculty of Economics).
Tatiana Yurieva worked at Moscow State Construction University, Moscow State University of Economics, Statistics and Informatics (MESI). Since 2011 working in the Russian Presidential Academy of National Economy and Public Administration (RANEPA). From 2014-2019 as head of the Department projects and programs management, also head scientific program “Projects and Programs Management” (RANEPA). Since 2019 working as professor of Faculty of Sport and Tourism management, Institute of finance and sustainability development. (RANEPA).
Member of the Russian Project Management Association. Member of the editorial Board of the journal “Financial Business” (Russia), “Risk Management” (Russia), “Regional Economy and Management: electronic scientific journal” (Russia), Programme Committee “International Scientific Conference on Project Management” (Riga, Latvia).
Author of monographs, textbooks and more than 100 scientific articles on Economics and Management. Participant of more than 30 international scientific and practical conferences.
Head of scientific work of undergraduates, post-graduates and doctoral students. She participated in the implementation of projects as a manager and executor, in expert and analytical activities in the bodies of state and municipal administration. Tatiana Yurieva is Honorary worker of higher professional education of the Russian Federation.
Dr. Yurieva can be contacted at yuryeva@ranepa.ru or web: https://www.ranepa.ru