Financial stability of investment and construction projects in terms of project financing

Marina Mishlanova,A Mottaeva

doi:10.1051/e3sconf/201913802021

Marina Mishlanova, A Mottaeva

Open Access

https://doi.org/10.1051/e3sconf/201913802021

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Abstract

The paper determines the relevance and purpose of the study. The characteristic and functions of a special purpose vehicle of project financing are presented. The conditions of project lending are described. The ways of ensuring financial stability of the investment and construction project at various stages of its life cycle are considered. At the preinvestment stage, the financial model and budget of the project are considered as a mechanism for ensuring the sustainability of the project. The directions of normative and methodological support for effective financial modeling and project budgeting in the context of project financing are identified. At the implementation stage, a cost control system for the investment and construction project was developed. A formal decomposition of the control system under study is proposed, and a functional description of the subjects of control is presented. The conditions of preserving the project within the budget and adaptive management of investment and construction projects are considered.

Highlights

Nowadays, project financing is an actual multi-tool form of financing investment and construction projects [1,2,3,4,5,6,7,8]
Investment and construction projects undeniably comply with the requirements of the project financing model in terms of long-term, capital intensity, risk sharing, special use of funds, which involves specific signs of the implementation of the investment and construction project:
In the cost control system of the investment and construction project, we propose to highlight internal subjective control and external control

Summary

Introduction

Project financing is an actual multi-tool form of financing investment and construction projects [1,2,3,4,5,6,7,8]. According to the forecasts of a number of scientists [7], an increase in the share of project financing by 1% due to the multiplier effect can lead to an increase in global GDP by 0.14%. Many experts emphasize that project financing in Russia is at the initial stage of development and has a number of problems [2,3,4, 6,7,8]. Significant factors hindering the development of project financing in Russia are the lack of the possibility for the project company to pledge future potential property and liability rights [7], underdeveloped mechanisms of state guarantees or refinancing of commercial banks for project financing transactions without using state guarantees.

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Conclusion