International Experience of Infrastructure Projects Financing

Abstract

The article examines practical experience of financing of infrastructure projects in the US, Australia, Chile, China, India and Kazakhstan. The author points out the specifics of the circulation of infrastructure bonds. Financing of infrastructure projects through bonds has both advantages and disadvantages. In the world practice, there are examples of successful application of the mechanism of issuing infrastructure bonds in order to finance real projects. In the US, infrastructure bonds are issued at the municipal level and are called special purpose bonds. In recent years, financing of infrastructure projects is actively developing in the world practice due to corporatization. In order to attract investments, infrastructure funds are being created in countries with developed economy that already account for 2% of the total investment funds. The world largest investor in the development of transport infrastructure is China which invests amounts equivalent to 8% of the national GDP in infrastructure projects. In the system of financing of the transport infrastructure facilities in India, the main focus is on private capital. The share of the state budget funds and government loans in the volume of the infrastructure investments is a little more than 35%. Today, imperfection of the legal mechanism obstructing an effective implementation of this type of financial instruments is a serious problem as regards the introduction of infrastructure bonds in Russia. The author brings forth recommendations for adoption of infrastructure bonds in the Russian financial market. The international experience of using bonds to finance the construction and modernization of transport infrastructure allows us to assert that this channel of attracting investments is the most promising for Russia.