Abstract
Developed and advanced way of calculation concession fee than provided by the Government Methodology from 04.02.2016. It based on the critical review of existing legal regulation in Ukraine, considering the inflation factor according to international requirements (UNIDO). This approach provides a reduced risk of members of concession agreement, protection of the project member’s interests and the financial viability of the project. Ukraine should follow international practice and rely on concession fee as an instrument of regulation, not only as a fiscal instrument. During the concession contest, where the criteria for selection of the winner is a concession fee, the Government should provide the object to concession if the amount of the payment will be higher than the maximum profit that can get a monopoly. Fee may take the form of a single or an annual payment. In the latter case, reasonable discount rate must be set to calculate the present value of the stream of payments. Confirmed: the need pre-planning examination of normative documents, the use of sentences of the international experience of evaluation of projects, the revised rate of interest a concession payment, the desirability of calculating asset values using their average annual cost, taking into account the special conditions of the project.
Highlights
Present consultants, who are working on reforming relations in concessions for the infrastructure projects implementation, present their proposals to representatives of the European Bank for Reconstruction and Development (EBRD)
They propose the stochastic model of Whereas concession procedures and related capaconcession period for infrastructure processes, bility requirements create entry barriers for newwhich takes into account the impact of risks and comers, a policy aimed at reducing these barriers, the attitude to risk of the private investor and the according to the scientists, can have a value
The following conclusions were reached as a result of the conducted analysis of “Calculation method of concession fees”, approved by the Cabinet of Ministers of Ukraine
Summary
Present consultants, who are working on reforming relations in concessions for the infrastructure projects implementation, present their proposals to representatives of the European Bank for Reconstruction and Development (EBRD) This is only first step towards beginning massive concession reform of legislation, which provides for the harmonization of legal regulation in Ukraine to the best international practices and modern international standards. Renewed legislation will attract powerful international and Ukrainian investors to modernize and rebuild the national infrastructure This will allow Ukraine to create new objects of road, port, energy and municipal infrastructure that will meet international quality standards, will help create new work places and activate the process of economic growth in the country. After the loss of the action of existing methods for a certain time [1; 8], it follows to analyze operating methodology [5]
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