Subject This article discusses the issues and problems of private investment in public-private partnerships. Objectives The article aims to analyze the current situation in public-private partnerships. Methods The research methodology includes a comparative analysis, formalization, and financial modeling. Results The article describes the key characteristics of public-private partnerships and shows its prevalence in the Russian economy. It tells of the need for an investment analysis when assessing the feasibility of a project using the internal rate of return. The article proposes an original definition of public-private partnerships and mechanism of financial modeling for practical assessment of the feasibility of private investment in public-private partnerships. Conclusions and Relevance The existing financial terms of public-private partnership agreements do not correspond to the conditions for obtaining fair returns for the sectors characteristic of public-private partnership. To address this problem, it is necessary to use a methodology to justify the performance of private investment in such a project. The results of the study can be used to further explore the efficiency of investing in public-private partnership projects.
Keywords: investment, internal rate of return, State
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