Abstract
The article discusses the possibility of using social bonds as the additional sources of financing in the construction and operation of water supply and sanitation facilities under concession agreements. The specifics of social bonds in accordance with the requirements of the International Capital Markets Association (ICMA) to social impact projects has been clarified. It is proposed to use the social bonds’ circulation mechanism in the implementation of investment projects for the technological modernization of water supply and sewerage networks in the municipalities of the Rostov region. The liquidity of social bonds will be determined by collateral, which will be the government grants, which the investor will be able to receive only if the stated social goals are achieved. In order to reduce risks and increase the attractiveness of social impact projects, it is proposed to use the RR Regional Development Corporation as a project operator and guarantee fund.
Highlights
The need for technological renewal of industrial and social infrastructure has led to the use of public-private partnerships (PPPs), designed to create an effective mechanism for the construction and operation of large infrastructure facilities on the basis of pooling the resources of the private sector and public authorities
World practice proposes to link the solution of economic goals with the tasks of social development of territories, for which the International Capital Markets Association (ICMA) has developed principles and recommendations for the development of debt instruments for financing projects aimed at solving significant social problems
Social bonds are a debt instrument, the proceeds from the placement of which are directed to the full or partial financing of new or existing social projects that comply with the principles of social bonds
Summary
The need for technological renewal of industrial and social infrastructure has led to the use of public-private partnerships (PPPs), designed to create an effective mechanism for the construction and operation of large infrastructure facilities on the basis of pooling the resources of the private sector and public authorities. In this regard, it is important to ensure funding for such projects from various sources. The principles of social bonds are focused on universalizing the market for these bonds by introducing transparency in all project information. They should stimulate the growth of investment in social projects, without any intermediaries
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