FINANCIAL PROVISION OF THE REGION INFRASTRUCTURE DEVELOPMENT: RESTRICTIONS AND RISKS

• Main Authors: Marina S. Tolstel, Elena G. Russkova, Ekaterina S. Yakovleva
• Format: Article
• Language: Russian
• Published: Volgograd State University 2017-09-01
• Series: Vestnik Volgogradskogo Gosudarstvennogo Universiteta. Seriâ 3, Èkonomika,Èkologiâ
• Subjects: infrastructure; region; financial support; long-term investment; restrictions
• Online Access: http://ges.jvolsu.com/index.php/en/archive-en/375-science-journal-of-volsu-global-economic-system-2017-2-39/regional-economics/1182-tolstel-m-s-russkova-e-g-yakovleva-e-s-financial-provision-of-the-region-infrastructure-development-restrictions-and-risks

Infrastructure is a key factor in the development and maintenance of long-term economic growth, both in countries and regions. Analysis of regulatory and legal support for the development of the infrastructure investment market shows that the Russian Federation has not so far created a unified system for regulating longterm investment in infrastructure facilities, while foreign experience indicates the possibility of its construction in modern conditions. The main trends in the formation and development of the market for long-term investment in Russia are identified, and its constraints are revealed. The authors consider the restrictions and risks of financial support for the development of the region’s infrastructure, related both to demand and supply. The financing of infrastructure projects has a complex and diverse risk profile due to uniqueness, technical complexity and low liquidity of the created assets, which leads to constant adjustments and changes during design and construction, and requires adaptive management of the financial infrastructure support process. The above restrictions on investment in infrastructure are not difficult to overcome, but a range of measures is necessary for this: careful assessment of investment risk reduction instruments, knowledge of regional practices, involvement of reliable counterparts in the implementation of infrastructure projects, state protection, as well as maintenance of a favorable macroeconomic, legal and investment climate, both in the region and in the country as a whole. Taking into account the special status of financing long-term infrastructure projects, a system of incentives and measures is proposed that would, on the one hand, specifically stimulate and protect investment in infrastructure, and on the other hand, create a common quality investment environment for the preparation and implementation of infrastructure projects.