Concession as a tool of infrastructure facilities modernization

The development of engineering infrastructure demands carrying out modernization of infrastructure facilities in which the mechanism of public-private partnership plays more and more important role. The need of comprehensive regulation of subjects’ activity in the public-private partnership (PPP) field causes Russian legislation development in this sphere. Within promptly enhanced legislation in the field of PPP, development of this direction is promoted by approach, taking into account parties’ economic interests in case of concluding agreements on PPP. We developed algorithm of determining the price of concession agreement of infrastructure facilities on the basis of the principle of the best use of a concession object. This algorithm allows estimating the greatest possible size of a rent from this concession object. Besides, this algorithm allows approaching determination of concession agreement price taking into account the comprehensive expenses accounting by host and allows creating individual terms of agreement irrespective of concession subject type. The developed algorithm finds practical reflection in the practice of concession agreements conclusion between public authorities of the Irkutsk region and business. We have revealed positive dynamics of results of concession agreements application as a tool of modernization of infrastructure facilities, by carrying out analysis of results of municipal property management in heat supply sphere on example of Irkutsk city. We established direct influence of the economic interests synchronization pledged in algorithm of concession agreement price determination, on implementation of investing program actions within the concession agreement.