Value engineering of public-private partnership infrastructure projects

Abstract

The lack of developed infrastructure leads to a decrease in the country’s economy, quality of services to the public, and business activities. Infrastructure is very important so most countries create and improve it at the expense of treasury funds. At the same time, public resources are not sufficient to fully support investment. Most countries carry out capital-intensive infrastructure projects with the involvement of private investors, using the form of private-public partnership (PPP). This form provides the most efficient ways to use public and private property. Based on analysis of domestic and foreign practice government generally supports PPP. Nevertheless, there are no approaches to involving private investors in the projects. The system of value management projects is an important part of investment construction in the social sphere. The value of the project must be control to avoid budgetary diversions. With this in mind, the article identifies factors affecting the value of the project. Thus, recommendations have been identified to reduce the adverse impact on the project.