Public-Private Partnership in Transport Infrastructure as a Form of Interaction between Government and Business

Abstract

The interest in public-private partnership as a form of interaction between government and business in transport infrastructure is driven by the fact that investments in the transport sector have historically served as a basis for successful economic development. About half of the world's infrastructure costs are related to transport. Aim . The presented study aims to examine the expansion of the institutional environment's capability to use public-private partnership, statutory regulation of interaction between government and business in the form of public-private partnership in transport infrastructure. Tasks . The authors examine the regulatory framework of public-private partnership, analyze the economic effect from the use of public-private partnership in Russian transport infrastructure, identify the need to significantly expand the interaction of government and business in transport infrastructure through the use of public-private partnership, substantiate the benefits of using public-private partnership in transport infrastructure as a form of interaction between government and business. Methods . The methodological basis of this study includes the fundamental provisions of modern economic theory, theory of public administration, and research in the field of public-private partnership. The information basis of the study includes laws and regulations of the Russian Federation on publicprivate partnership and Russian statistics on the results of interaction between the government and private business in the form of public-private partnership. Results . The study shows that cooperation between the government and private investors is mutually beneficial. Cooperation brings additional investment for the government, which makes it necessary to significantly expand the interaction between government and business in transport infrastructure by using public-private partnership. Conclusions . The study shows that public-private partnership used for the development of transport infrastructure provides the government with significant additional private investment in the economic sector that previously could only rely on public funding. Costs and risks are redistributed between the state and the private investor; the best managers and modern technologies are attracted from the private sector; project completion times are significantly reduced. Private investors receive state guarantees on minimum return and return on investment as well as access to the market in an economic sector with stable demand - the public services sector.