Private Investment In Projects Research Articles

CОГЛАШЕНИЕ О ЗАЩИТЕ И ПООЩРЕНИИ КАПИТАЛОВЛОЖЕНИЙ КАК ИНСТРУМЕНТ ПОДДЕРЖКИ РЕАЛИЗАЦИИ ИНВЕСТИЦИОННЫХ ПРОЕКТОВ

Increasing sanctions pressure on Russia and the need to implement the Presidential Decree оn the National Development Goals of the Russian Federation through 2030 (July 21, 2020, No 474) determines the urgency of the search for effective tools encouraging real growth of fixed investment up to at least 25% GDP. One such instrument could be the Investment Protection and Promotion Agreement (IPPA) allowing private business to stabilize the business environment, which is especially important under conditions of growing uncertainty, when predictability becomes the rarest and most demanded resource. The purpose of the study is to analyze a tool designed to stimulate the implementation of investment projects on the territory of Russia – IPPA. The methodology of the study includes comparative, systematic and informative analysis. The main finding is that, despite some limitations, IPPA is a potentially effective tool to support the implementation of private investment projects under conditions of import substitution, helping to restart the investment cycle and attract «long-term» money to the real sector of the national economy

화훼영업보상제도의 문제점 검토 및 개선방안

Compensation for flower complex business is emerging as a significant social issue along with the so-called the compensation for the 3rd term New Town development. The problems and its solutions should be searched for from the legal and theoretical grounds such as ① the principle of just compensation pursuant to Clause 3 of Article 23 of the Constitution ② realization of social justice of equality before public charge ③ scheming to balance the public and private interests ④ stability of a legal life. Flowering plant is a plant cultivated for ornamental and processing purposes. Business refers to an act of continuously repeating the same kind of activity with a profit-making purpose. When compared with the concept of business in terms of the Commercial Law, the concept of business in terms of “the Land Compensation Act” is substantially disparate in the sense that profitability is excluded and legitimacy of business sites is added. For convenience’s sake, flowering plant business in development restricted areas is classified into 5 types.
 According to Clause 1 of Article 77 of the Land Compensation Act and Article 45 of the Enforcement Regulations of the same Act, the element of the business is that the business should be continuously operated equipped with human and physical facilities in a legitimate business site prior to the date of business acknowledgment notice and abide by the business authorization as stipulated in operating its business.
 The elements for the legitimacy of the business sites should be interpreted in connection with individual laws such as Clause 1 of Article 56 of the National Land Planning Act, Clause 1 of Article 20 of the Construction Act, Article 12 of the Act on Restricted Development Areas and Paragraph 1 of Article 12 of the Enforcement Regulations of the same Act [Annex 4]. The recent adjudication and precedents by the National Land Eminent Domain Committee have been summarized in this study. Most of the cases except for the “Urban Development Project of Gimhae Sameo District” were in legal disputes within the restricted development areas, where, in particular, the legitimacy of the business sites was the main controversial issue.
 While the three cases prior to this case pertains to type 1 and 2 of the flowering plant business, the private investment project of the 2nd Gyeongin Expressway is regarded as type 4 where the plaintiffs cultivated pot plants outside for a certain period of time and brought in greenhouses to sell them to retailers.
 Seoul Administrative Court dismissed the claim for compensation for business loss, judging that the installation of each greenhouse could not be regarded as a minor development activity according to the regulations above mentioned. Thereupon, the plaintiffs appealed against the decision, but Seoul appellate Court also dismissed plaintiffs' appeal for the compensation. It was also dismissed by the Supreme Court as a trial with the reason of no need for further hearing. According as the legitimacy of business sites is required to be a legal element, it is rather against the principle of equality in the fair comparison between the private interests of those who complied with the law and those who violated the law to compensate the people with the public charge who do not meet the requirements, even having committed the illegal acts and to give policy-oriented consideration for them. Therefore, the exclusion of the element of legitimacy of business sites is likely to be inconsistent with the principle of fair burden.

Evaluation of private investment performance

In Ethiopia, there has been various economic and political reforms for the last ten years which can motivate private investors. Even though, some improvements have been registered as a result of such reforms, the performance of private sectors became low. This study conducted to evaluate the performances of private investment in regional distribution, sector contribution, and ownership structure and employment creation. The result shows that Most of private investment projects are concentrated around Addis Ababa, with manufacturing and service sectors. In Ethiopia, foreign private projects are capital incentive while Domestic private projects have higher share in employment creation. Emerging regions in the country exhibited small number of private projects as compared to other regions. Identified variables for the study includes private investment, inflation rate, abroad money supply, GDP per capital, interest rate, exchange rate, public investment, and external debt. To enhance the analysis, Econometrics model with OLS using multiple regression was applied. The result shows that GDP per-capital, and external debt have significant positive long run effect on private investment, while broad money supply and average exchange rate have negative long run effect. Broad money supply, GDP per-capital, and external debt have significant short run effect.

Risk-adjusted Social Discount Rates

When evaluating public and private investment projects, those that contribute more to the collective risk should be more penalized through an upward adjustment of their discount rate. This paper shows how to estimate the risk-adjusted discount rate for different projects, with applications to the electricity sector. Using the standard framework of consumer theory, we express any investment project’s beta in terms of the easier-to-measure price and income elasticities of the goods generated by the project. When considering an investment in production capacity, the beta has a flat term structure, and is positive (negative) for normal (inferior) goods. When considering core infrastructures carrying goods or services, such as energy transmission and distribution assets, the beta has a decreasing term structure with very high values at short horizons for infrastructures facing capacity constraints. We provide a real-case example of a cross-border electricity connection with negative beta for the exporting country.

Greenwashing behaviors in construction projects: there is an elephant in the room!

In the process of urbanization, a brisk building boom triggers a series of environmental problems. Construction contractors usually present environmentally fraudulent behaviors, i.e., greenwashing behaviors (GWBs), to legitimize their activities, ultimately hindering the sustainable development of the society. However, the formation mechanism of the contractors' GWBs is still unclear. Through the lens of fraud GONE theory (i.e.,greed, opportunity, needs, and exposure), this study applies the multi-group structural equation model (SEM) and fuzzy-set qualitative comparative analysis (fsQCA) to examine the formation mechanisms of GWBs. The results of SEM show the relationships between four fraud factors and GWBs. Additionally, the projects are grouped into three categories: government investment projects, private-public-partnership (PPP) projects, and private investment projects. The results of multi-group SEM reveal that the effects of four fraud factors differ significantly across projects with different investment characteristics. The results of fsQCA suggest that there are three typical driving mechanisms for GWBs. Furthermore, this study develops a project information transparency framework and a "greenwashing tree" to form a systematic understanding of GWBs. Finally, on these bases, this study provides targeted suggestions and policy recommendations for governing contractors' GWBs.

Управление отношениями как результат бюджетного планирования (на примере отдельных субъектов Российской Федерации)

The article is devoted to the issues of improving the effectiveness of budget planning in the constituent entities of the Russian Federation. The end result of budget planning is presented by the authors as an effective management of relations between the state and society, incl. business. A methodology for the analysis of budget planning indicators that characterize these relationships is proposed. The following indicators are used as targets: the share of tax and non-tax revenues in the revenues of the consolidated budget of a constituent entity of the Russian Federation (i.e., budgetary self-sufficiency), the share of business taxes in tax and non-tax revenues, and the share of direct government support measures for private investment projects in the expenditures of the consolidated budget of the constituent entity of the Russian Federation. These relationships are analyzed in two groups of the constituent entities of the Russian Federation, in which during 2011-2020 stably high (Group A) and stably low (Group B) levels of budgetary self-sufficiency were observed. The study uses general scientific and statistical methods for analyzing numerical and qualitative information. Calculations showed that during 2011-2020 in Group A, the considered indicators grew more often and more consistently, and these ratios showed greater stability than in Group B. Also in Group A, in contrast to Group B, there was an increase in the contribution of business entities to budgetary self-sufficiency. Moreover, in Group B, there were lower volumes of governmental program support measures for private investment projects, which are critical for increasing the budgetary self-sufficiency of its participants. The results, conclusions and proposals contained in the study are addressed, first of all, to federal and regional state authorities and local governments involved in the development, approval, execution and monitoring of the consolidated budget of a constituent entity of the Russian Federation. In addition, the study contains useful information for specialists in public finance, state financial control and statistics.

Increasing the private investment scheme effectiveness of Indonesia public housing through institutional integration

Indonesia is predicted to have 305 million of citizen by 2035 from the demographic bonus. Number of houses needed increases as well as its worthiness. Alternative ways of funding with private sector investment become top priority to provide public housing. However, some issues raise, i.e. project preparation period, hard to get financially feasible, and coordination complexity. Literature review and qualitative analysis are conducted. Main topics of the literature are public housing, infrastructure, private investment project, institutional, government effectiveness, and Indonesia existing condition. The qualitative analysis is used to find the relationship between literature to result the conclusion. Project preparation period and financially feasible should be solved by the function of private investment institutional which are central consultation and government support. Meanwhile, institutional integration can simplify the coordination complexity. The less the stakeholder number, the simpler the coordination.

SOC 도로부문 민간투자사업의 효율성 분석에 관한 연구

국내 SOC 민간투자사업은 1994년 민간자본유치촉진법 제정 이후 정부의 재정부족을 해소하고 민간의 창의성과 효율성을 도모하여 민간 투자를 유인함으로써 한국경제 활성화에 중요한 기여를 한 것으로 평가되고 있으나, 재정투자에 한계가 존재하여 민간투자사업의 증대를 통한 국가경제 활성화가 필요한 시점이다. 현재까지 민간투자사업에 대한 적정한 평가를 수행한 연구는 없는 실정이다. 본 연구는 건설이 완료되어 운영되고 있는 국내 도로분야민간투자사업과 공공투자사업의 상대적 효율성을 비교, 분석하여 민간투자사업의 효율성을 진단하고자 하였다. 본 연구는 자료포락분석(data envelopment analysis, DEA)을 이용하여 효율성을 분석하였고, 중요도-만족도 분석(importance-performance analysis, IPA)을 통해 민간투자 활성화 방안을 도출하였다. 2018년 기준 전국의 28개 공공투자고속도로와 민간투자고속도로의 사업별 효율성을 건설, 운영, 수익, 통합 효율성으로 구분하여 분석하였다. DEA를 통하여 각 고속도로의 효율성을 산출하였으며, 공공투자와 민간투자사업의 그룹 간 효율성을 비교하기 위해 T-Test를 통한 그룹 간 평균 차이를 분석하였다. T-Test 분석결과, 운영 및 수익 효율성의 그룹 간 평균 차이가 유의한 것으로 분석되어 운영 및 수익 효율성에서 민간투자사업이 공공투자사업보다 효율성이 높음을 알 수 있었다. 본 연구는 SOC 사회기반시설의 재정투자의 한계를 극복하고, 민간투자의 증대를 꾀하고자 오랫동안 추진되어온 국내 도로분야 민간투자사업이 공공투자사업에 대비하여 민자사업의 본래 취지에 부합하여 효율성을 발휘하였다는 것을 입증하였다. 또한, 정부재정을 보완하고 효율적인 사업추진이 가능한 민간투자사업이 활성화되기 위해서는 어떠한 활성화 노력이 필요한지 논의하였다. 민간투자사업 활성화를 위한 요인들을 전문가 설문조사를 통하여 활성화 요인을 도출하고, 시사점을 도출하였다. 분석결과, 활성화 요인들의 중요도 점수가 만족도 점수보다 높게 나타났으며, 전문가들은 민자사업 활성화에 필요한 요인들이 중요하다고 판단한 반면, 정부정책에 대한 만족도는 거기에 미치지 못한 것으로 확인되었다. 본 연구를 통해 정부고시사업 확대, 임대형(build-transfer-lease, BTL) 민자사업에 대한 민간제안 허용 및 확대, 새로운 민간투자 사업방식의 도입, 노후시설의 민자사업 활성화, 적격성조사 절차 간소화 등 도출된 활성화 요인들을 정책적 시사점으로 제시하였다. 본 연구결과가 민간투자사업 활성화에 중요한 참고자료로 활용되고, 이를 기반으로 민간투자사업이 활성화되는 계기가 마련되었으면 한다.

Investment multiplier as a risk generator for economic security of the Russian Federation

The subject of this research is the risks generated by multiplicative processes that accompany private and public investment projects in the sphere of ensuring economic security of the country. The author examines the inflationary component of multiplicative processes, which can cause rise in the cost of the investment projects implemented in the sphere of economic security, up to their cancellation. Particular attention is given to multiplicative transfer of income gains from purposefully developed industries to adjacent or loosely related industries. Such a transfer boost the competition for resources between the industries and complicates the implementation of projects in the sphere of ensuring economic security. The following conclusions were made:   - The structure of the process of interaction between the investment multiplier and investment accelerator is self-similar, which simplifies its modeling;   - Multiplicative processes may generate risks in sphere of ensuring economic security of the country;   - In order to substantiate the need for implementing large investment projects, the consideration of generated multiplicative processes is required;   - Modeling and taking into account the multiplicative processes allows transforming them from a risk generator into an instrument that amplifies the steps of the government and private investors on ensuring economic security of the country.   The novelty of this research consists in the approach towards analyzing multiplicative process as a risk generator, which complicates the implementation of investment projects by shifting the impact upon the trajectory of their development.      

КАПІТАЛЬНЕ ІНВЕСТУВАННЯ В УКРАЇНІ В УМОВАХ ПАНДЕМІЇ COVID-19

In the current conditions of integration and globalization of the world economy, investment processes have the key importance in the formation and development of the domestic economy. The article highlights the impact of the spread of the COVID-19 pandemic on the investment activity of business entities in Ukraine. The consequences of the coronavirus pandemic and the current state of activity and Ukrainian industries development are considered. Industry and construction have been hit hardest by the COVID-19. The decline in capital investment is inherent in all types of economic activity, except financial and insurance activities, public administration and defense, compulsory social insurance and health care, and the provision of social assistance. This is due to the intensification of investment processes and significant government infusions into the development and maintenance of health care and increasing public interest in social insurance, especially health insurance against COVID-19. In the field of industry, the largest losses in 2020 were the supply of electricity, gas, steam and air conditioning; mining and quarrying; metallurgical production, production of finished metal products. The restraining factors that influenced the decrease in investment activity of economic entities have been identified. Most programs for the development and stimulation of investment processes in Ukraine require significant changes and adaptations to the new realities caused by the global pandemic. The article proposes measures to stimulate investment activity of economic entities, in particular in the field of capital investment. The state should pay special attention to capital investment in the national pharmaceutical industry. Emphasis is placed on the need to implement an effective state investment policy that will help finance the implementation of necessary public or private investment projects, restore and improve production, improve the infrastructure of certain sectors of the economy, increase the competitiveness of individual production structures, industries and the world.

Investment multiplier as a risk generator for economic security of the Russian Federation

The subject of this research is the risks generated by multiplicative processes that accompany private and public investment projects in the sphere of ensuring economic security of the country. The author examines the inflationary component of multiplicative processes, which can cause rise in the cost of the investment projects implemented in the sphere of economic security, up to their cancellation. Particular attention is given to multiplicative transfer of income gains from purposefully developed industries to adjacent or loosely related industries. Such a transfer boost the competition for resources between the industries and complicates the implementation of projects in the sphere of ensuring economic security. The following conclusions were made:   - The structure of the process of interaction between the investment multiplier and investment accelerator is self-similar, which simplifies its modeling;   - Multiplicative processes may generate risks in sphere of ensuring economic security of the country;   - In order to substantiate the need for implementing large investment projects, the consideration of generated multiplicative processes is required;   - Modeling and taking into account the multiplicative processes allows transforming them from a risk generator into an instrument that amplifies the steps of the government and private investors on ensuring economic security of the country.   The novelty of this research consists in the approach towards analyzing multiplicative process as a risk generator, which complicates the implementation of investment projects by shifting the impact upon the trajectory of their development.      

Preparing for Successful Collaborative Contracts

Preparing well before entering a contract is always vital, independent of the characteristics of the project and type of contract. However, as projects become larger and more complex, and value for stakeholders and society becomes the dominating perspective on success, the need for well-developed collaboration is becoming more and more critical. In this paper, we investigate how the parties should prepare for a collaborative project. The purpose is to help owners secure the success of the project for its key stakeholders. We choose to address the issues as an active risk mitigation strategy that serves as a vehicle to reduce uncertainty, avoid unnecessary risks, and utilize opportunities as a project owner. We look at the project mainly through a project owner perspective, but on key points, we contrast this with contractor perspectives. The research was performed in Australia in 2020 and includes public and private sector investment projects. The methodology is qualitative case studies and includes primarily in-depth interviews supplemented with document studies and two workshop group discussions. The paper highlights the difference between being collaborative in a contract and using a collaborative contract. The results document significant differences in preparations depending on the degree of complexity of the projects. One major difference is illustrated in the different levels of precision in terms and definitions used in communication. Complex projects require freedom of interpretation only gained by allowing wide and less precise expressions.

Gentrificación e higienización del espacio en Callao, Perú. Barrio de Castilla

El objetivo de este estudio es analizar cómo la gentrificación de un barrio metropolitano empieza a dislocar a sus residentes por población flotante (turistas/consumidores). Para ello, exploramos la percepción de los vecinos del barrio de Castilla en el Centro Histórico del Callao, Perú, con respecto a un proyecto de inversión privada (Monumental Callao) a través de técnicas cualitativas (entrevistas semiestructuradas, observación no participante, revisión de data oficial). Para la lectura de los hallazgos hemos conjugado la semiótica de la espacialidad con el urbanismo para poder dar una lectura que no solo se concentra en la ontología del espacio, sino en sus relaciones sociales y su puesta en discurso con los procesos urbanísticos. Los resultados arrojan que la gentrificación del barrio de Castilla se ha conjugado con un proceso de higienización del espacio, en donde, solo se puede exigir derechos en tanto se vuelve consumidor.

국토교통 R&D 민간투자사업의 자금재조달 제도의 문제점 및 개선 방안 : BTO 도로사업 자금재조달 사례를 중심으로

정부는 사회간접자본에 대한 민간투자법 개정을 통해 최소운영수입보장(Minimum Revenue Guarantee, MRG) 제도를 도입하여 재원조달을 위한 적극적인 정책을 제시했다.BR 자금재조달(Refinancing) 공유이익을 사용료(통행료) 인하효과에 반영하여 도출해 낸 추정모형을 산출한 뒤 정부와 사업시행자 간 산정방법과 절차 등 결과에 따라 향후 정부와 사업시행자 간에 실시협약 체결 사전단계에서 이익분담 조건을 고려할 수 있는 등 많은 유용한 자료로 활용 가능할 것으로 판단한다.BR 민간투자사업의 경우 자금재조달 추진 시 사전에 민간사업자의 예측 가능성 확보가 필요하며 투자자의 이익이 침해되지 않는 범위 내에서 상호 공익적 효과를 거둘 수 있도록 관련되는 제도를 보완할 필요가 있다.BR 사업재구조화의 경우, 타당성 평가를 위한 시스템 및 제도와 정부 지원의 투자자 보상금액이 해지 시 지급금을 초과하는 경우에도 그보다 더 큰 공익적 결과와 효과를 얻을 수 있을 경우 사업재구조화 추진이 가능하도록 하는 정부의 시스템 구축 등 세부적인 제도적 보완이 필요하다.

합리적 민간투자사업을 위한 민간투자법의 쟁점과 과제

합리적 민간투자사업을 위한 민간투자법의 쟁점과 과제

The relationship between public capital stock, private capital stock and economic growth in the Latin American and Caribbean countries

In this study, we analysed the relationship between public capital stock, private capital stock and economic growth for a group of 30 Latin American and Caribbean countries from 1970 to 2014. To achieve our goals, the panel vector autoregression methodology, panel dynamic ordinary least squares and panel fully modified ordinary least squares estimators were used. The results from our estimations point to both public and private capital having a positive effect on the long-run economic growth of the countries in our sample. However, the results also point to public capital seeming to crowd private capital in the short run, which could consequently be one of the explanations for the adverse effect that public capital stock seems to have on growth. (A result which was also found in the short-run analysis.) These findings suggest that governments in Latin America and the Caribbean should continue to support public and private investment projects, given the positive effect that both types of capital seem to have on the long-run economic growth of these countries. However, some changes should be made in the planning and execution of such investments in order to avoid some undesirable effects that seem to exist, especially in the short run.

Involving stakeholders in transboundary water resource management: The Mesta/Nestos ‘HELP’ basin

Alternative options for new private and public investment projects in the transboundary Mesta/Nestos River catchment between Bulgaria and Greece involve new dams and water storage reservoirs, agricultural irrigation systems, new tourist resorts and various water-related facilities for urban and industrial water supply. These developments are designed to be implemented in both parts of the basin (in Greece and Bulgaria), where different socio-economic conditions prevail, resulting in each country having different preferences and objectives. Alternative options should consider environmental consequences, to the impact on ecosystems and human health, and also financial and social risks. Any negative impacts on the environment, and whether these negative impacts can be prevented, should be weighted against the economic and social benefits foreseen. Sustainable implementation of private or public utility projects cannot be achieved without public participation and a clear consensus between stakeholders. The UNESCO HELP (Hydrology for the Environment, Life and Policy) initiative provides a rationale for breaking the 'paradigm lock' existing between the most recent scientific findings on the one side and the public, stakeholders and decision makers on the other. In this paper stakeholder involvement in the decision making process is promoted firstly by communicating the results of integrated modelling of water resource management at the basin scale, and secondly by suggesting alternative models and software in order to facilitate negotiations and final decision making processes in transboundary water resource management These models help to rank alternative projects according to the attributes of stakeholders in each country; the aggregated attributes of the stakeholders in both countries; and the aggregated goals of each country.

Прямое соглашение в проектах с государственным участием: сравнительно-правовой анализ

Over the past years, the Russian Federation has taken a number of measures aimed at developing existing legislation in order to create attractive, stable and transparent conditions for private investment in projects with state participation, on the one hand, and to reduce the financial burden on the budget system, on the other. Currently, the tools to provide investors with special legal regimes for carrying out economic activities (such as special economic zones, territories of priority social and economic development, industrial technology parks, clusters and industrial parks, special tax regimes, territorial development zones etc.) are sufficiently implemented in the system of Russian legislation and economic practice. However, it should be recognized that there are significant gaps in the use of internationally recognized instruments to assist investors in the framework of contractual relations. In other words, today, regarding supporting the implementation of investment projects with state participation, only the necessary institutional, but not contractual environment has been formed, the latter being an indispensable requirement for attracting private (including foreign) investors. In this regard, the article considers one of the key elements of the international practice in supporting the implementation of investment projects with state participation — a direct agreement with senior creditors, and also contains a comparative legal analysis of such practice with the Russian system of legal regulation. The article concludes that it is necessary to expand the possibilities of using direct agreements in investment projects with state participation in Russia, and formulates proposals to bring their provisions in line with the best international standards.

Economic Results of Private Investments in the Road Infrastructure Projects: Does the HDM-4 Show the Big Picture?

The Highway Development and Management model (HDM-4) is a software system developed for the evaluation and optimization of the economic benefits of the road projects and is widely used both by practitioners, decision makers, international consulting companies, and academia. This article analyzes the application of the HDM-4 in the management of the private investment projects in the road sector thus trying to identify the main missing points for the evaluation of the big picture in the sector. The aim of the current study is to justify the need for the further development of a relevant plug-in tool for the HDM-4 to completely estimate the economic results of the projects in the road sector with private investments.

Northern Puna Plateau-scale survey of Li brine-type deposits in the Andes of NW Argentina

Salars of the Andean Plateau in the Central Andes are the largest lithium deposits on Earth. The most notorious are the Chilean Salar de Atacama, and Uyuni in the Bolivian Altiplano. Despite the relevance of the region concerning the lithium resources, there is still scarce scientific literature on the hydrochemistry of lithium deposits in the Argentine portion of the Andean Plateau. In this article we present new hydrochemical data from the first regional-scale reconnaissance exploration of the four major salars in the northernmost Argentine Andes. Data revealed that brines in the studied salars are characterized by mean Li concentrations ranging between 82 and 1014 mg L−1, and mean Li:Mg ratios from 0.92 to 0.54. The size of the study salars becomes a potential limitation for the whole Li resources in comparison with the giant Atacama and Uyuni. Nonetheless, when considering the Li grade and the Li:Mg ratio of brines, the Northern Puna salars turn out to be very remarkable lithium prospects. Data emerged from this survey represent a valuable tool for: 1) private investment projects by defining Li mining targets, 2) for the administration of natural resources and the definition of the State's politics, and 3) for scientific purposes, especially in investigations meant to better understand the processes involved in the formation of Li brine deposits, salars, and endorheic basins.