Public-Private Partnership: Prospects for the Development of Socially Significant Infrastructure

Abstract

Public-private partnership (PPP) has turned to become a constantly replicated stamp, which is widely used both in Russia and abroad. PPP is associated with the forms of organization of economic cooperation between the state and the private business, which bring benefits to both partners: the state develops public infrastructure (public good), saving budgetary funds and focusing on the experience of private investors; private investors use a stable risk-free” sphere of their investments with a stable long-term rate of return under the patronage of the state. However, in Russia as well as in other countries of the world, PPP projects are expanding slowly, especially in socially significant infrastructure as a powerful driver of future economic growth. In this regard, the problem of creating the conditions necessary to ensure the multiplier effect of budget financing of public infrastructure in conditions of a deficit of public finances is becoming especially urgent. It is advisable for the state to use budget financing not to invest in PPP projects, but to ensure the interests of private investors, including institutional players.