Concession Agreements Research Articles

Accounting of payments under a commercial concession agreement

In accordance with the Program for the Development of Federal Accounting Standards, Federal Accounting Standard 14/2022 “Intangible Assets” entered into force on January 1, 2024. At the same time, many questions arise about the application of this standard in various and frequently encountered situations, in particular, when concluding commercial concession (franchising) agreements, under which lump-sum payments and royalties are paid. Using the example of various practical situations, the article considers the procedure for recording non-exclusive rights to use the trademark of another franchisor organization in the accounting of a franchisee organization. During the research, such methods as analysis and synthesis, the method of comparison, grouping, analogy, logical and systematic approaches were used. The research results obtained in this article can be applied in the practical work of modern organizations, in the educational process of higher educational institutions and in the development and reform of regulatory documents on accounting, reporting and auditing. The results presented in this paper will also be useful to a wide range of readers interested in modern problems of accounting, reporting and auditing at the domestic and international levels.

Экономическая основа местного самоуправления в Аргентине: некоторые подходы к правовому регулированию

The author analyzes the legislation of some provinces of Argentina in terms of regulating the economic foundations of the organization of municipal authorities. The article touches upon property aspects and approaches to the delimitation of public and private property of municipalities (public and private domains), some requirements for concession agreements, and forms of public participation in decision-making by local governments in the economic sphere.

Сравнительный анализ договора коммерческой концессии и франчайзинга (франшизы)

This article discusses the problem of defining the concept of a commercial concession as a civil law contract, ways of doing business, and also draws a correlation with the concept of franchising, which is used to determine identical types of contracts in foreign countries. The article analyzes the concepts of “commercial concession” and “franchising”, considers the points of view expressed by different authors. The result of this study is the relationship between the concepts of a commercial concession agreement and franchising in the system of Russian law.

Legal view on the concept of optimum models of public-private partnership in the security sector of Ukraine

The article is devoted to the study of public-private partnership in the security sector of Ukraine. It was established that public-private partnership is the highest form of interaction (cooperation) between the state and society, characterized by the involvement and exchange of resources provided by the non- state sector in order to increase innovation and efficiency in the public sector, as well as the development of certain areas.
 Attention is drawn to the fact that despite the fact that the Law of Ukraine «On Public-Private Partnership» does not single out the security sector as an area where interaction between the state and society is possible, the analysis of current legislation in the defense sphere and daily practice shows that the security sector is also sphere of implementation of public-private partnership. It is specified that a) the security of the state is a good that is necessary for the proper and full functioning of society; b) the sphere of state security contributes to the provision of public interest, which determines the need for proper interaction of the private and public sectors; c) the field of security, within which the public-private partnership is implemented, includes cyber security, public safety, protection of critical infrastructure facilities, border security and territorial integrity of Ukraine, etc.
 It is established that the study of public-private partnership models is impossible without taking into account the experience of the United States of America (Anglo-American legal system) and the European Union (Romano-Germanic legal system). It was concluded that the most optimal models of public-private partnership in the security sector for Ukraine are 1) implementation of priority projects in the field of infrastructure of local and state importance through the tender procedure (practice of the United States of America); 2) attraction of state assets by private companies, which makes it possible to implement many joint projects in the field of security (practice of the European Union); 3) contract for management and operation (of the European Union); 4) concession agreement.

Evaluation Of The Implementation Process Of PSAP 16 Service Concession Agreement – Grantor On Toll Roads At The Ministry Of Public Works And Housing

This research aims to evaluate the process of implementing PSAP 16 in toll road service concession agreements at the Ministry of Public Works and Housing and the obstacles in implementing accounting by applicable regulations. This research uses qualitative methods through a case study approach by analyzing documentation data, process assessment checklists, and semi-structured interviews. The research results show that the implementation process of PSAP 16 has several obstacles, including the computerized accounting calculation system that does not fully accommodate the calculation of service concession assets, especially for service concession agreements that were in place before PSAP 16 came into effect and the need for internal control to separate the portion of capital expenditure and operating expenditure in service concession assets so that it can be presented under economic substance. This research recommends that coordination is needed to develop an integrated accounting system for recording service concession assets, optimize effective internal control over service concession agreements, and adequate measurement mechanisms so that service concession assets shall be accounted for in accordance with PSAP 16.

Модели оценки и классификации региональных инвестиционных проектов, реализуемых в рамках концессионных соглашений

Imposed wide-ranging sanctions require stricter control over the use of budget funds in order to increase the return on investment and minimise the risks of inappropriate spending. Thus, regional development based on the implementation of investment projects with public participation through concession agreements becomes particularly important. The article considers the construction of classification models for the assessment of such projects to identify high-risk concession agreements. State customers can use these models to make informed decisions when choosing a contractor and to improve the efficiency of public property management. For an objective assessment of the integrity of contractors based on financial and other factors, the study used screening models and built-in tools of the SPARK information and analytical system, as well as the methods of descriptive analysis of big data, machine learning and the nearest neighbours approach for clustering regional investment projects according to the risk of improper execution of concession agreements. The presented approach was tested on 1248 regional investment projects implemented through concession agreements. As a result, the research identified two clusters: projects with low risk (83.8 %) and high risk (16.2 %) of improper performance of obligations by the concessionaire. To assess the models’ accuracy and sensitivity to outliers, the confusion matrix and Spearman’s coefficient were utilised, which showed a sufficiently high accuracy of the resulting classification. The constructed models can be used for selecting regional investment projects, as well as for monitoring implemented projects in order to identify potential risks of their non-completion and timely take necessary response measures.

РОЛЬ ГЧП В ФОРМИРОВАНИИ ИНВЕСТИЦИОННОЙ ПРИВЛЕКАТЕЛЬНОСТИ КРЫМА

The current investment policy of the Republic of Crimea is analysed in the article. The authors evaluate the regulatory and legal framework that contributes to enhancing investment attrac-tiveness of the region. The results of the National investment climate rating of the Russian Federation constituent entities indicate that Crimea is quite attractive for investors, despite the international envi-ronment (over the past 84 years the Republic of Crimea has risen from 5th to 76th rating position). Ac-cording to the Investment Portal of the Republic of Crimea, the most popular areas with private investors are tourism, construction and agriculture. However, there is still a need for financing of such socially important areas as infrastructure and ecology. After assessing the implemented investment projects, it was revealed that the projects prove to be relatively financially efficient but it is imperative to ensure that they are more in line with the needs of the local population. The authors consider the mechanism of public-private partnership (PPP) as a tool to reconcile these issues. Only PPP can provide such advantages for investors as reduced risks and state guarantees, including guarantees of return on investment, for achieving not only economic but also social effects. The government, in its turn, obtain an expensive infrastructure facility without huge budget spending. The priority areas for PPP project execution in Cri-mea are water supply and wastewater disposal, road transport infrastructure and solid waste manage-ment, concession agreement is the main form of their implementation. The results of the ranking of the Russian Federation constituent entities by level of the public-private partnership development and the Investment climate rating show that PPP development in Crimea is at a rather low level (XNUMXth place), nevertheless the region has significant potential. In terms of the state of the regulatory environment the Republic is ahead of St. Petersburg, one of the traditional leaders. The position of Crimea in the ranking can be explained by the lack of implemented projects. The authors make an attempt to identify factors, hindering the development of PPP in the Republic of Crimea, and suggest possible solutions.

МЕТОДИКА ФОРМИРОВАНИЯ ФИНАНСОВОГО ИНСТРУМЕНТАРИЯ ИНВЕСТИЦИОННЫХ ПРОЕКТОВ С ИСПОЛЬЗОВАНИЕМ КОНЦЕССИОННОГО МЕХАНИЗМА

In this article, the authors consider some methodological approaches to the formation of financial instruments for investment projects. The paper reflects the current problems of the development of concession agreements in our country, indicates the need to intensify the involvement of private capital in investment projects using the concession mechanism. One of the ways to attract private investors may be the development of a methodology for the formation of financial instruments for investment projects. Through the prism of the provisions of the legislation on concession agreements, as well as as a result of the analysis of the opinions of scientists, experts and practitioners on existing methods of financing projects using the concession mechanism, the author’s methodological recommendations on the formation of financial instruments for investment projects are presented. The methodological approaches presented in the paper can be used by all interested parties in the process of preparing and implementing investment projects using the concession mechanism.

Dynamics of green finance in the Russian Federation

Against the backdrop of the growing importance of sustainable development and environmental protection issues, the urgent need to increase the share of “green” investments in the financing of investment projects is substantiated. The study proposes to pay special attention to the formation of a solid regulatory framework in the field of green finance. The proposal includes the development of a strategy and concept for the development of green financing, as well as a law that would establish an effective mechanism for the implementation of green financing, taking into account the peculiarities of Russian reality. This mechanism should make private investment more attractive for financing projects and contribute to the creation of a set of measures, including ways to reduce the financial burden on the federal budget and the budgets of the Russian Federation constituent entities. We come to the conclusion that Russia should take into account global experience and practices in the field of green financing, as well as stimulate the introduction of concession agreements and public-private partnerships. The introduction of “green” financing will contribute to the preservation of natural resources and their further increase, which will allow the creation of innovative products, promote the development of scientific and technological progress, and also preserve the health of the nation, since products made in “green” financing projects are environmentally friendly.

Application of public-private partnership in smart city projects implementation considering environmental management

The paper presents the "Smart City" pilot project from the point of view of the benefits of public-private partnership for each participant in the joint activity aimed at optimizing urban infrastructure. The role of the state and the private sector in the transformation of the city into a single "smart" system is defined. Indicators of the state's expectations from the implementation of the pilot project are given. The forms of public-private partnership contracts and the degree of their applicability on the example of a concession agreement are considered. The possibility of realization of public-private partnership in certain areas of concession agreements is examined. The probable future of the Smart City project activities after its completion from the point of view of the development of public-private partnership principles is determined. The strategic importance of the Smart City project implementation and, separately, of the PPP principle for the optimization of public relations is revealed.

МОЖЛИВОСТІ ІМПЛЕМЕНТАЦІЇ СВІТОВОГО ДОСВІДУ РЕАЛІЗАЦІЇ МЕХАНІЗМІВ ДЕРЖАВНОЇ ІНВЕСТИЦІЙНОЇ ПОЛІТИКИ НА РЕГІОНАЛЬНОМУ РІВНІ

The article analyzes various approaches, ways, forms and methods of state support for investment activities used in global practice. At the same time, the generalization of the relevant experience was carried out in two directions: general approaches and practices regarding the activation and efficiency of investment activities, in particular in the conditions of the crisis state of the economy, its insufficient investment attractiveness and instability; a specific toolkit used in the conditions of war and post-war reconstruction of the national economy. The purpose of the study was to generalize the world experience of implementing state investment policy mechanisms and to identify opportunities for their implementation in Ukraine at the regional level. The leading provisions of the world experience regarding the formation and implementation of regional investment policy are defined, in particular in the aspects of the goal and objectives of the regional investment policy, its mechanisms and the expected results of their implementation, the system of tools for supporting and developing investment activity. The main quality and efficiency criteria of the regional investment policy are identified, namely the volume and specific characteristics of investments, as well as the rationality of their structure, financing and use. At the same time, two conditions should be considered basic: transparency of the competitive environment and state control over strategic enterprises, types of economic activity, and sectors. It has been established that a sufficiently extensive toolkit of regional investment policy has been developed through world experience. In particular, effective tools of regional investment policy in conditions of critical instability are: insurance of military risks, their diversification; using the possibilities of concession agreements; private-public investment in defense industry and industries / sectors of critical infrastructure; support of innovative technological startups in the spheres of security, the real sector of the economy, infrastructure; stimulation of investments in the field of preservation of human potential; support for investments in business projects of demobilized people, war veterans, etc. participants in hostilities; stimulating investments in the development of export potential to preserve the country’s financial security.

Upgrading utility infrastructure systems in the Russian Federation: Concession mechanisms

In the Amur region (Russian Federation), the extent of wear and tear of engineering heating networks was 21 percent as of the year-end 2022, which was an average value for this region. In some cities of the region under study wear and tear reaches 72 percent. The current wear and tear of utility infrastructure systems substantially degrades the quality of utility services provided to the population and boosts the percentage of heat losses and accidents in heat networks. The goal of the research project is to devise an action plan to reduce the rate of accidents and the wear and tear of heat networks in the Amur region of the Russian Federation by developing a concession mechanism focused on upgrading utility infrastructure systems. Logical analysis of the regulatory legal framework, as well as analysis of qualitative and quantitative values of utility infrastructure systems (heat networks in the Amur region). The need for the mechanism of concession agreements was substantiated as a means of upgrading utility infrastructure systems. Actions are proposed to boost the funding of repair and replacement of utility infrastructure systems in the Russian Federation.

Concession as a Tool for the Implementation of Regional Investment Projects

The implementation of promising investment projects is the most important task of the regions, since innovative ideas are being implemented, production and other promising areas for the regions are developing, new jobs are being created, regional product and budget occupancy are increasing. In Irkutsk region, a significant share of investment projects falls on the industrial sector. Projects in the field of agriculture, creating a comfortable urban environment, logistics and healthcare are also of great importance. A system of financial and non-financial institutions has been formed in the Irkutsk Region to support businesses in the implementation of investment projects. A promising tool for the implementation of investment projects is a concession. The purpose of this study is to study the modern possibilities of implementing concession agreements for the implementation of regional investment projects. The article discusses the concepts and approaches to the conclusion of concession agreements; legal aspects of the conclusion of concession agreements. Particular attention is paid to the problems of concluding concession agreements for the implementation of investment projects without attracting private capital. The research methodology is based on a theoretical analysis of the main aspects of investment design and its financing tools. The information base of the study was data on the development and implementation of investment projects in the Irkutsk region. The scientific novelty lies in the identification of a new mechanism for the implementation of concession operations, which involves the creation of quasi-public structures on the rights of private ones. The practice of concession operations with regional development corporations is being studied. The article examines the experience of concluding concession agreements in the regions of Russia. Special attention is paid to the creation of the Central cluster in the Irkutsk region on the terms of a concession. This is a major investment project that includes a waste sorting and recycling complex.

The Practice of Applying Concession Agreements and Agreements on Public-private (Municipal-Рrivate) Partnership (on The Example of The Volgograd Region)

The Practice of Applying Concession Agreements and Agreements on Public-private (Municipal-Рrivate) Partnership (on The Example of The Volgograd Region)

Государственно-частное партнерство в системе здравоохранения Хабаровского края

Relevance The tasks set for the healthcare system require the attraction of significant resources, primarily financial ones. Public-private partnership (hereinafter referred to as PPP) can become an effective tool for solving some of the tasks set, attract investments and become a serious inductor in the implementation of infrastructure projects, the construction of modern medical organizations. Some forms of PPP may make it possible to raise additional funds for the provision of medical care and the expansion of paid medical services. All this requires a more detailed scientific study of the forms of interaction between PPPs in the healthcare sector. Purpose and objectives of the study The purpose of the study is to increase the effectiveness of interaction between the state and business in the health care of Khabarovsk Krai by developing a set of measures using public-private partnership tools. The objectives of the study included the study of publications and the legal framework, the structure of financing in the system of compulsory health insurance, the study of the level of awareness and willingness to involve healthcare organizers of medical organizations in Khabarovsk Krai in PPP processes, as well as the study of infrastructure facilities subordinate to the Ministry of Health of Khabarovsk Krai. Materials and methods The study used data from open sources, including regulatory legal acts, publications and articles on PPP issues, studied open data from the territorial fund of compulsory medical insurance of Khabarovsk Krai, data from the unified state register of real estate. Also, a survey of health care organizers was conducted using a questionnaire specially designed for the study. Results A classification of public-private partnerships in healthcare has been developed, and the main forms of interaction have been identified. It was determined that from 2020 to 2022, funding for non-state medical organizations increased by 15 %: from 1.001.741.1 thousand rubles to 1.151.886.0 thousand rubles. There is a predominance of funding, including in 2022, of organizations of the Russian Railways system (627.552.0 thousand rubles), as well as organizations providing hemodialysis services (195.913.0 thousand rubles) and radiation diagnostics (219. 265.0 thousand rubles) PPP forms are actively used to solve social problems under the “Older Generation” program, funding for ophthalmology has been significantly increased, the dynamics compared to 2020 is +1975 %. According to the results of a survey of healthcare organizers, 2/3 of the respondents see development prospects, 44 % consider outsourcing to be the most promising, 26 % – concession agreements, 92 % indicate an insufficient level of awareness on PPP issues, 90 % expressed their willingness to take part in educational events. In total, the subordinate organizations of the Ministry of Health of Khabarovsk Krai have 1.369 premises and buildings, 419 (30.1 %) of them are used to provide the main function of medical organizations, and 950 are auxiliary. 187 (44.6 %) out of 419 have over 80 % wear and tear, need either reconstruction, major repairs, or are subject to demolition and construction of new facilities. Conclusion The results of the study allow us to fix the main parameters of the healthcare industry, determine ways for further improvement, and develop a set of measures for the development of public-private partnerships in healthcare. It is necessary to conduct an in-depth scientific study of PPP with the involvement of economists, specialists in the field of state and municipal administration, healthcare organizers, undergraduates and graduate students. A comprehensive comprehensive study will significantly increase the effectiveness of measures to develop public-private partnerships in Khabarovsk Krai.

Public-private partnership in the Russian Federation at the present stage: Trends and problems of development

Aim. To generalize the trends and problems of public-private partnership (PPP) development in the Russian Federation (RF) at the present stage.Objectives. To perform a brief review of the history of PPP development in Russia; to disclose the essence of theoretical provisions regarding the features and principles of PPP; to analyze the data characterizing the development of PPP in 2018–2022 in terms of the number and types of projects, the amount of financing raised, the levels of their implementation (federal, regional, municipal); to study the features of the implementation of the concept of “PPP for the benefit of people” in modern Russian practice.Methods. With the help of general methods of scientific cognition in various aspects, the authors have considered the features, trends and problems of PPP development in Russia, characteristic of the current state, as well as determined the general directions of their solution.Results. PPP is a modern method of attracting private capital to solve socio-economic problems of development of industries and territories. Its features are revealed through economic, social, financial, legal, managerial, political sides. The actual set of principles includes expediency, efficiency, legality, priority of public interests, responsibility of the parties to obligations, information transparency. The world practice has accumulated experience in the use of various PPP projects. The modern trend is the inclusion of sustainable development goals in the PPP development concept, which significantly modernizes approaches to the selection of PPP projects. The main trends of PPP development in Russia include the predominance of PPP projects implemented by type (concession agreements), number (municipal level projects), financing volumes (regional level projects), specific financial capacity (federal level projects); expansion of the range of sectors, objects, introduction of new measures, tools and mechanisms for the development and modernization of social infrastructure, ensuring technological sovereignty. The multiplicity of problems of PPP development in Russia is caused by legal, macroeconomic, personnel, political, managerial factors, which determines the need for continuous improvement of organizational, legal, financial and economic mechanisms.Conclusions. The study of trends and problems of PPP development in Russia allows not only to identify the national specifics of attracting private capital to solve problems of socio-economic development, but also to identify ways, directions of improving the welfare of the population, the growth of competitiveness of individual territories on the basis of a fuller use of entrepreneurial potential of regions.

Understanding the Nexus between Seaport Efficiency and Nigeria’s Non-Oil Export Performance: A Case study of Lagos Seaports 2000 -2020

This research focused on assessing the relationship between seaport efficiency and Nigeria’s non-oil export. The western ports of Lagos were selected as the Decision-Making Units (DMU) for this study covering the period of 2000 to 2020. Two stage estimation process was employed. Data Envelopment Analysis (DEA) was deployed in the first stage to generate the efficiency index required to test the relationships. In the second stage, the efficiency index so generated was introduced as one of the independent variables in a multiple regression model, using Autoregressive Distributed Lag Model (ARDL). The finding shows that seaport efficiency has a positive and significant relationship with non-oil export in the long run and a positive but insignificant relationship with non-oil export in the short run. The study concluded that seaport efficiency has a direct and positive impact on Nigeria’s non-oil export. This study therefore recommended the effective implementation of reforms of critical infrastructure particularly the transportation sector for improved efficiency by the federal and state governments; the deepening and close monitoring of the concessionaires by the Nigerian Ports Authority, to meet their investment and operational expectation in the concession agreement.

К вопросу о правовом регулировании концессионных соглашений в Республике Абхазия

The article scrutinizes the role of concession agreements and public-private partnership in the Republic of Ab-khazia in the legal analysis of problems and prospects of their development in the Republic of Abkhazia. The authors ascertain the necessity of adopting a law at the legislative level, which would regulate the issues relat-ing to the conclusion, execution and termination of concession agreements. The paper compares it with the Russian concession legislation, and also states the fact of the existence of interstate relations in this area, albeit not in its entirety. The authors formalize the main problems hindering the optimal development of concession relations, in particular, such as the absence of a full-fledged law regulating the conclusion and execution of concession agreements, the lack of possibility to conclude agreements with foreign companies. The article develops and substantiates a system of measures to resolve these problems, aimed at strengthening this insti-tute of business law.

Legal and Technological Aspects of Life Cycle Contract Implementation in the Long-Distance Passenger Rail Transportation

The analysis and the experience gained in shaping contractual relations in the LCC format, both on the part of foreign companies and in the domestic market, have resulted in the conclusion that it is beneficial for the customer to conclude LCC. Ultimately, the costs are reduced by about 10-15 % compared to the traditional form of contractual relations (separate contracts for manufacturing and, respectively, service maintenance). LCC is also advantageous since it eliminates the need to search for and subsequently contract the contractors at the stage of operation.When concluding LCC contract, both purchase and subsequent maintenance of rolling stock can be carried out through a concession agreement in compliance with legislation regulating the procurement procedure. When purchasing, it is necessary to be guided by the requirements of federal law in terms of mandatory tender procedures and selection of potential suppliers.The analysis of existing models for formation of contractual relations for maintenance of rolling stock under the LCC contract has shown that it is advisable to consider the possibility of extending it to newly manufactured passenger rolling stock used in long­distance passenger transportation.

Stopping Firestone and starting a citizen ‘revolution from below’: reflections on the enduring exploitation of Liberian land and labour

Attempting to reduce America’s dependence on foreign-sourced rubber, Firestone established in 1926 the world’s largest industrial plantation in Liberia under a controversial 99-year-lease agreement. Nearly a century later, backlash against the exploitative nature of corporate hegemony and economic globalisation crystallised in a transnational campaign, Stop Firestone, and class action suit to hold the multinational accountable. I argue in this article that Liberia’s unequal incorporation into global capitalism has configured and reconfigured the set of relations between government and citizens through parallel, albeit interrelated, processes—the globalisation of capital (via trade and investments) and the globalisation of rights (via universalised notions of citizenship as a human right). While the pursuit of foreign direct investment (FDI) in particular placed the interests of investors like Firestone ‘above’ the state thus undermining government–citizen relations, it simultaneously created a politicised workforce and network of Liberian activists thus strengthening citizen–citizen relations. Based on careful review of concession agreements and court proceedings as well as interviews conducted with government officials, activists and legal advocates based in Liberia and the United States, this article is the first to meld historical and contemporary developments, underscoring the twenty-first century implications of Firestone’s enduring exploitation of Liberian land and labour.