Concession agreements and life cycle contracts in the transport infrastructure: Challenges for successful implementation

Abstract

The form of state participation in the creation of public goods depends substantially on the industry and level of development of the country. In the transport sector, various forms of public-private partnerships are common, from concession agreements to life-cycle contracts. The choice of the form of partnership should be determined by the distribution of risks and obligations between the parties, the possibility of obtaining operational and investment cash flows, the composition and value of transaction costs. The purpose of the study is to identify the problems of applying various forms of public-private partnerships in Russia and abroad in the transport sector. The advantages and disadvantages of various forms of public-private partnerships are presented, the necessity of using public-private partnerships in the mineral sector is substantiated. It was revealed that the composition of participants in various forms of public-private partnerships is the same, but their interests are different and must be reconciled in terms of the contract. For a life-cycle contract and a concession agreement, the distribution of state obligations in investment and operating activities is different. The shortcomings of the life-cycle related to the conclusion of contracts in general and with the specifics of the contract itself are presented in detail.