Subject. The article addresses modernization of lending facilities under concession agreements. It is important for evaluating the terms of credit transactions, effectiveness of credit projects, and the concessionaire's ability to repay the loan. Objectives. The purpose is to review the current financing mechanism and underpin approaches to improving the credit facilities within concession agreements. Methods. The study rests on general scientific methods, like the systems and logical analysis and synthesis, principles of induction and deduction, financial calculation techniques. The analytical part employs the balance method, methods of financial coefficients and the method of technical and economic estimates. Results. I analyzed the financial structure and special characteristics of concession agreements, parameters of concessionaires’ activities; considered the types of risks inherent in bank lending under concession agreements, methods for their identification and mitigation; offered a mechanism of lending, including the structure of credit transactions, restrictions for the financial condition of concessionaires, additional requirements and penalties for their non-fulfillment. The findings can help banks define lending parameters for concession agreements. The provided recommendations may be useful for consideration by the authorities of the constituent entities of the Russian Federation. Conclusions. It is possible to reduce the risks of lending under concession contracts, if their terms and conditions are stable, and if the lost income of concessionaires is compensated in the event of early termination. Reasonable tariffs for works and services and increased revenue collection will promote this type of lending.
Keywords: concession agreement, concessionaire, grantor, bank, lost income
References:
Tuktarov Yu.E., Ivanov N.M., Dorokhov A.I. Prakticheskii kommentarii k Federal'nomu zakonu “O kontsessionnykh soglasheniyakh”: monografiya [Practical comments on the Federal Law ‘On Concession Agreements’: a monograph]. Moscow, Statut Publ., 2020, 484 p.
Miroshnikov S.N., Charkina E.S. [The practice of application of concession agreements in the light of changes to legislation in 2016]. Upravlencheskoe konsul'tirovanie = Administrative Consulting, 2017, no. 5, pp. 112–119. URL: Link (In Russ.)
Eremin A.A. Franchaizing i dogovor kommercheskoi kontsessii: teoriya i praktika primeneniya: monografiya [Franchising and commercial concession agreements: Theory and practical application: a monograph]. Moscow, Yustitsinform Publ., 2017, 207 p.
Seleznev P.L. Gosudarstvenno-chastnoe partnerstvo v Rossii 2016–2017: tekushchee sostoyanie i trendy, reiting regionov [Public-private partnership in Russia 2016–2017: Current state and trends, rating of regions]. Moscow, Assotsiatsiya Tsentr razvitiya GChP Publ., 2017, 32 p.
Platonova N.L. Nauchno-prakticheskii kommentarii k Federal'nomu zakonu “O kontsessionnykh soglasheniyakh” [Scientific–practical commentary to the Federal Law ‘On Concession Agreements’]. Moscow, Jus Unum Publ., 2015, 565 p.
Kondrat'eva E.A. [Commercial concession as a legal form of business coordination: Key aspects]. Pravo i ekonomika = Law and Economics, 2015, no. 3, pp. 57–60. URL: Link (In Russ.)
Sitdikova L.B. et al. Obyazatel'stvennye otnosheniya v chastnom prave Rossii: monografiya [Contractual relations in the private law of Russia: a monograph]. Moscow, RSSU Publ., 2015, 142 p.
Maklakov G.V. Effektivnost' kommercheskoi deyatel'nosti [Efficiency of commercial activity]. Moscow, Dashkov i Ko Publ., 2016, 232 p.
Maksimova A.N., Ivanov N.N. [Present-day functioning of organizations in the sphere of services: Strategies of franchising]. Problemy sovremennoi ekonomiki = Problems of Modern Economics, 2013, no. 1, pp. 212–214. URL: Link (In Russ.)
Alekseenko A.P. Pravovoe regulirovanie otnoshenii v sfere pryamykh inostrannykh investitsii v Rossiiskoi Federatsii i Kitaiskoi Narodnoi Respublike: sravnitel'no-pravovoi aspekt: monografiya [Legal regulation of relations in the field of foreign direct investment in the Russian Federation and the People's Republic of China: A comparative legal aspect]. Moscow, Prospekt Publ., 2018, 192 p.
Elkibaeva L.G. [Peculiarities of parties to public-private partnership in China: Comparison with Russian laws]. Yurist = Jurist, 2018, no. 10, pp. 41–46. URL: Link (In Russ.)
Skripnik O.B. Teoriya, praktika i perspektivy razvitiya kommercheskoi kontsessii v ZhKKh: monografiya [Theory, practice and prospects for the development of commercial concessions in housing and communal services: a monograph]. Moscow, Finansy i statistika Publ., 2013, 238 p.
Panyukova V.V. [Organization of franchise sales: Russian and foreign experience]. Upravlenie prodazhami = Sales Management, 2012, no. 3, pp. 172–185. (In Russ.)
Kolinichenko M.V. [Franchising as an effective form of innovative development of the service sector]. Sovremennye problemy servisa i turizma = Modern Problems of Service and Tourism, 2011, no. 3, pp. 70–77. (In Russ.)
Chen Z.M., Zhang M., Si D. China's PPP Practice: Development, Models, Problems and Solutions. International Economic Review, 2015, vol. 4. URL: Link
Zhang Z. Foreign Investment and Public–Private Partnerships in China. European Procurement & Public Private Partnership Law Review, 2017, vol. 12, no. 1, pp. 29–39. URL: Link
