Concession Agreements in Heat Supply

Abstract

Introduction. In the West, concessions are the most common form of public-private partnership in such
 sectors of the economy as telecommunications and communications (60 %), energy production and distribution
 (19 %), transport (18 %), and water supply (3 %). As a form of public-private partnership concession
 agreement pursues the goal of involving private investment in the creation, reconstruction, modernization of
 socially significant publicly owned facilities. Based on public interests, government will determines the goals and
 parameters of the concession project and takes control over its using, and the concessionaire takes on
 operational activities (development, financing, creation, use, management, provision of services to consumers).
 Purpose. The purpose of this article is to conduct concessions, including the content concluding, amending and
 terminating a concession agreement in the field of heat supply. Methodology. Achieving this goal was
 achieved through the use of general scientific and particular scientific research methods: dialectical, formal
 logical, systemic-structural, comparative legal, technical-legal, linguistic, scientific analysis method. Results.
 The historical aspect of the formation of the concession and the analysis of concession models leads to the
 conclusion that this legal framework is the most effective alternative of public-private partnership in relation to
 socially significant infrastructure facilities. Conclusion. Today, there is a process of implementation of the
 concession mechanism in Russia, the state is interested in partnerships with private capital in weak investment
 areas. However, society and business have incomplete understanding of the essence of the concession, the
 practice of its application. The transition to a concession system means a change in the essence of relations
 between the state and business in both legal and economic contexts. The implementation form of the
 concession agreement should fix the balance and mutual interest of the parties in the application of the most
 effective, modern and technological methods of construction, reconstruction and use of facilities, as well as the
 provision of quality services to consumers.