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Regional Economics: Theory and Practice
 

State-of-the-art finance public road system of the Irkutsk region and prospects for development

Vol. 13, Iss. 4, JANUARY 2015

PDF  Article PDF Version

Available online: 30 January 2015

Subject Heading: Regional finance

JEL Classification: 

Pages: 28-36

Cherkashina M.V. Baikal State University of Economics and Law, Irkutsk, Russian Federation
solnymar@mail.ru

Importance The article considers the financial condition of road building in the Russian Federation and Irkutsk region. The paper deals with the problems of creating a network of public roads with sufficient length and quality of the road surface, that is relevant in the present.
     Objectives The aim of the paper is to offer ways to finance road infrastructure development, using a case of the Irkutsk region; in particular, using such a model of public-private partnership as "design-build-finance-operate" (DBFO).
     Methods The study examined the economic and statistical information, reviewing the state-of-the-art finance roads, problems of development of road industry of the Russian Federation, as well as the advantages of public-private partnerships for commercial and public financial sectors and the economy as a whole.
     Results The study grounds the introduction of a DBFO model of public-private partnership in the road economy of the Irkutsk region.
     Conclusions and Relevance The paper concludes that the conditions for the development of international cooperation with China at the expense of modern financial management mechanisms of the road sector and public-private partnerships will help make public roads of the needed length. Active use of public-private partnerships will also enable more efficient spending budgets at all levels of the budget system of the Russian Federation, and creating incentives for the development of long-term lending of the road branch companies.

Keywords: road facilities, financing, public-private partnership

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