Financing of infrastructure projects in territorial communities

Abstract

The issues of financial support for the restoration of critical infrastructure are of utmost relevance during martial law, charac­terized by limited resources and capabilities and increased risks, and must be addressed compre­hensively at the state and local levels. The structural redistribution of local budget reve­nues and expenditures that occurs during martial law necessitates the search for effective ways to attract off-budget instruments for financial support of infrastructure in commu­nities. The aim of the article is to assess the financial capacities and opportunities for restoring the infrastructure of territorial com­mu­nities and to review promising financial mechanisms. The research is based on the hypothesis that it is necessary to develop combi­ned forms of financial support at the level of territorial communities with an emphasis on intensifying the involvement of international donors. The research methods were used, such as systematic and comparative analysis and synthesis, abstract and logical method, and logical generalization. The research is based on materials from government sources on the state and local budgets and on the basis of scientific works by Ukrainian scholars. The article has presented the opinions of scientists on the financial support essence and systematized its forms, methods and tools for direct finan­cial support of infrastructure projects in communities; revealed the possibilities and prospects for their application under martial law. The expe­diency of choosing combined forms of finan­cial support as those that balance the interests of the participants has been substan­tiated. Based on the state analysis of budgetary financing of infrastructure projects at the state and local levels, the availability of financial capacity in local budgets and the continuing trend of long-term projects by international donors at the national level were established. The main method of financial support for projects at the state level is loan programs from international financial institutions and foreign governments. The author has proposed the development of promising forms of financial support for the restoration of infrastructure projects in the form of loan and grants programs combination from the Nordic Environment Finance Corporation (NEFCO)