Bìznes Inform (Dec 2021)
Foreign Experience in Implementing Concession Projects in the Social Sphere in the Context of the COVID-19 Pandemic
Abstract
The article substantiates that concession is an effective instrument for the implementation by countries of social projects aimed at solving the urgent needs of territorial communities in the context of the COVID-19 pandemic. It is emphasized that the application of concession activities allows countries to remain the owner of objects, while maintaining administrative and control functions. The peculiarities of application of public-private partnership models under the concession agreement are presented. The foreign experience of implementation of concession projects in the social sphere is generalized, in particular, successful practices of attracting investments in the conditions of financial decentralization are considered. It is determined that the most popular areas for the implementation of concession projects are transport (34%), environment (16%), education (14%), telecommunications (7%), healthcare (5%), and other sectors (24%). It is specified that concession activities abroad, as a rule, are regulated by separate legislation, the cooperation of the public and private sectors is based solely on contractual relations, according to which the private operator is guaranteed to receive remuneration for the work performed or services provided from a public organization and/or direct users. Based on the carried out research, the reasons for the widespread use of concession as a form of public-private partnership in different countries are determined, among which the main are: more effective management of projects on the part of the private sector; lack of financial resources of the State and the willingness of the concessionaire to take most of the risks from the implementation of large-scale infrastructure projects. Concessional shortcomings are also presented, which include: lack of professional management experience at the regional and local levels from private partners who implement projects for the first time; significant level of financial risk to the private sector, including the likelihood of bankruptcy; political and socioeconomic situation in the world due to the consequences of the COVID-19 pandemic. Upon the grounds of a generalization of world experience, the main directions of monitoring the impact of COVID-19 on concession projects are allocated, which can assist in determining the appropriate level of actions that can be taken by governments.
Keywords
