Abstract
The need for modern infrastructure as a prerequisite for sustainable development, poverty alleviation, and improvement of the quality of life of the population is a global problem that requires searching for and attracting large amounts of long-term investments. The presence of this problem in recent decades has led to the increasing implementation of complex and costly infrastructure projects through the public-private partnership (PPP) mechanism with high potential for attracting investment. This mechanism, in conditions of limited financial opportunities, allows one to combine the financial resources of the public and private parties for the implementation of major infrastructure projects. The limited use of existing tools at different stages of PPP projects and the increasing need for additional resources make it necessary to consider the possibility of using digital tools that complement traditional ones. For this purpose, the authors analyze existing financing tools, revealing their advantages and disadvantages, and identify and justify the possibility of using digital tools in the implementation of PPP projects. However, digitalization includes not only financing tools but also the development of infrastructure, including digital platforms needed to conduct such operations in the digital environment. As a result, a combined financing toolkit can be formed for each phase of project realization, including traditional and digital tools. The results of this study will become a basis for revealing the directions of the digital transformation of the PPP mechanism.
Highlights
The state and development of infrastructure is a key factor in the economic growth, social well-being, and competitiveness of individual regions and countries
Resource intensity and the extremely high costs required to address the infrastructure problems have contributed to the fact that large-scale infrastructure projects have in many cases been implemented through a public-private partnership mechanism
The goal of the research is to analyze existing practices and determine what digital tools and technologies can facilitate the digital transformation of public-private partnerships to enhance the socio-economic impacts on the state, business, and society
Summary
The state and development of infrastructure is a key factor in the economic growth, social well-being, and competitiveness of individual regions and countries. The insufficient provision of infrastructure facilities to the society leads to a significant increase in the demand for additional investment and the need to find long-term sources of financing. Public-private partnerships are defined as a public-private agreement on the production and provision of infrastructure services concluded to attract additional investment, and more importantly, as a means of improving the efficiency of budget financing (Delmon 2009). The public-private partnership (PPP) mechanism allows one to pool the financial resources of the public and private parties for implementing public projects, especially infrastructure projects, on mutually beneficial terms while sharing the risks of the implementation of the project. Interest in projects implemented on PPP terms is steadily growing all around the world, which is confirmed by the increasing volumes of financing by sector and the number of new participants
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