APPROACH TO RISK ASSESSMENT OF PUBLIC-PRIVATE PARTNERSHIP IN CONSTRUCTION

Abstract

It is noted that depending on the scope and type of services of the private sector services, there may be many basic models of PPP. The following classification of the main forms of PPP is provided: government contracts with private sector investment obligations (co-financing of the project, its construction and operation); rent (operation, technical re-equipment or modernization of the object); participation in capital (co-financing of share capital, construction and operation of the facility); concession (co-financing, design, construction, including expansion, reconstruction, technical re-equipment, modernization, and operation); production sharing agreement (construction and operation of the facility); contracts that combine different types of works and property relations (co-financing, or co-financing and construction, or co-financing, construction and operation). It should be understood that the above classifications give only a general idea of the models of public-private partnership, which is a very flexible system that depends not only on the legislation of each country, but also the scope, complexity and significance of the project. Most often in practice there are mixed forms that combine elements of different forms of contracts listed above. In order to be able to share risks between the state and a private company in PPP contracts, these risks must be clearly identified. This distribution of risks is significantly different from traditional contracts, where there are many so-called "hidden" risks assumed by the state. In PPP models, private contractors can assume the risks that are within their management. This is especially true for risks that are not controlled by the state. Under the traditional model of the state order for performance of works, the state pays work to the contractor, in process of performance of works or rendering of services. In the PPP, private businesses can recoup their costs based on different economic models of interaction through tariffs, fees for the use of the facility from physical users, periodic government payments based on productivity, or a combination of these sources. Traditional contracts are usually fully funded by the state from budgets at various levels. Depending on the type of contract, the share of private funding in the PPP varies. Projects with private pre-investment works, maintenance of the object under the contract, can be coordinated as projects of mixed financing taking into account public and private means. Paid concession contracts, where individuals reimburse their costs by collecting fees from natural users of the facility during the term of the agreement, are an example of projects that are fully funded from private sources.