Practical aspects of calculating the discount rate for infrastructure investment projects in the context of high interest rates and state incentives

This article defines the concepts of discount rate, weighted average cost of capital for the purposes of discounting cash flows, PPP and MPP investment projects, concessions. Attention is focused on the current problems of calculating the discount rate and its limitations. The features of estimating the discount rate for infrastructure projects in the Russian Federation are considered in the context of high market interest rates, a significant amount of subsidies and preferential programs from the state. A methodology is proposed for adjusting the generally accepted approach to calculating the discount rate (WACC) - a fixed (flat) value throughout the entire project implementation period. The proposed methodology allows for a more correct assessment of project risks in conditions of high market rates, which will allow at the initial screening stage not to reject interest rates with a long payback period and high capital costs at the initial (investment) stage - the key characteristics of infrastructure projects. One of the possible applications of the approach described in this article is the adjustment of the adopted regulatory documents on the assessment of investment projects. The areas of possible application of the proposed adjustments are the construction industry in the sectors of electric power, transport, social infrastructure, heat and water supply, bridge and road construction, urban development, and construction of industrial enterprises with state support (SPIC, offset contracts).