Public-Private Partnership As A Mechanism For Financing Infrastructure Modernization

The article is devoted to the study of the possibilities of attracting private business for financing stateowned infrastructural facilities. The purpose of the paper is to study the practice of attracting private business for the modernization of infrastructure, including railway and the development of an approach to the formation of a variety of infrastructural objects transferred to the public-private partnership, based on an assessment of the possible reduction of their potential. Methodology. The study is based on an empirical analysis of data on the practice of financing infrastructure modernization, as well as a SWOT analysis of the prospects for the development of European railways. Results of the research showed that the public-private partnership has significant advantages over the budgetary one due to not only reducing the financial burden on the state budget but also increasing the efficiency of using state-owned facilities. In the field of railway transport, the volume of public-private partnership and the number of projects being implemented is insignificant due to significant state interference in its activities. SWOT analysis showed that railways have significant development potential, and its further increase will be achieved not through expansion of the network, but its modernization and innovative development. The dangers of the development of railways are associated with possible ineffective state policy in the field of railway transport. However, the complete transfer of the rail infrastructure to private business is not expedient since it is of strategic importance. The determination of the list of facilities for transfer to public-private partnership should be based on an analysis of the degree of their interest in private business, the need for their modernization and the possibilities for its financing. These objects are sections of the railway network included in transport corridors, as well as providing access to seaports. At the same time, the criterion of the first priority of the transfer of objects for the public-private partnership should be based on an assessment of the change in their production and economic potential when postponing modernization. Value/originality. The implementation of the proposed approach to the selection of infrastructure facilities for public-private partnership will allow not only carrying out technical and technological renovation of the railway infrastructure, preserving the integrity of the strategic transport network, but also minimizing possible economic and social losses due to underfunding of its innovative development.