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Possibility of Applying the PPP Mechanism in the Implementation of Smart City Projects

Author

Listed:
  • Valentina N. Parakhina

    (North Caucasus Federal University, Stavropol 355017, Russian Federation)

  • Olga A. Boris

    (North Caucasus Federal University, Stavropol 355017, Russian Federation)

  • Rustam M. Ustaev

    (North Caucasus Federal University, Stavropol 355017, Russian Federation)

  • Galina V. Vorontsova

    (North Caucasus Federal University, Stavropol 355017, Russian Federation)

  • Oksana N. Momotova

    (North Caucasus Federal University, Stavropol 355017, Russian Federation)

Abstract

The relevance of the research topic is due to the search for funding sources and tools for implementing projects to create an urban management infrastructure using digital technologies. At the federal level, the Smart City project is included in the system of the national project Housing and Urban Environment and the national program Digital Economy, as well as in the state program Providing Citizens of the Russian Federation with Affordable and Comfortable Housing and ReevUtilities. The aim of the work is to study approaches to assessing the benefits and applicability of public-private partnerships as a mechanism for attracting private investors’ funds to create urban infrastructure using digital technologies. The research methodology includes a set of comparative analysis methods, point-rating and expert evaluations in terms of financing infrastructure projects for the development of urban economy. As a search for the best foreign practices in Russian practice, an analysis of theoretical approaches to assessing the ability of countries to implement financially sustainable and effective public-private partnership projects taking into account the international tool - the Infrascope index is carried out. It is shown that the possibility of implementing PPP projects has binary indicators, but at the same time, the acceptability of a particular legal form must be assessed taking into account the comparative advantage of PPP over budget procurement. According to the results of the analysis, the most popular and real forms of PPP implementation, if the object is information and communication technologies, are agreements (concession agreements) on PPP.

Suggested Citation

  • Valentina N. Parakhina & Olga A. Boris & Rustam M. Ustaev & Galina V. Vorontsova & Oksana N. Momotova, 2019. "Possibility of Applying the PPP Mechanism in the Implementation of Smart City Projects," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 6, pages 70-82, December.
    • Handle: RePEc:fru:finjrn:190605:p:70-82
    DOI: 10.31107/2075-1990-2019-6-70-82
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    References listed on IDEAS

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    1. Andrey Berezin & Bruno S. Sergi & Natalia Gorodnova, 2018. "Efficiency Assessment of Public-Private Partnership (PPP) Projects: The Case of Russia," Sustainability, MDPI, vol. 10(10), pages 1-18, October.
    2. Alexander Trynov, 2016. "Public-Private Investment Partnerships: Efficiency Estimation Methods," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 602-612.
    3. Athena Roumboutsos, 2015. "Public Private Partnerships in Transport Infrastructure: An International Review," Transport Reviews, Taylor & Francis Journals, vol. 35(2), pages 111-117, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    public-private partnership; implementation form; model; state; business; financial resources; digitalization;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • F15 - International Economics - - Trade - - - Economic Integration
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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