Concession development as a tool to attract investment into the region’s economy

Abstract

Concession development under public-private joint investment projects can help ensure the region's sustainability and competitiveness. These projects can enhance the financing of infrastructure industries under budgetary constraints. However, the current regulatory, organizational, financial, and other measures do not let to fully unleash the potential of the concession as a tool to attract investment into the region's economy. The aim of the research is to elaborate the practical guidelines for the concession development that will ensure sustainability and competitiveness of the region (based on the example of the Volgograd region). In this research, we used systematic, economic and statistical analysis and the dialectical method. This article provides an analysis of the statistical data on modern practices of the concession implementation. Future perspectives and requirements for the successful implementation of concessions are provided on the basis of the SWOT-analysis. We have concluded that in order to ensure high-quality results of the implementation of the concession agreements in the region it is necessary to improve the legislative framework on the regulation of the concession activities; to provide legal protection for private investors and creditors; to improve the competence of the staff of both the State structures as well as private investors on concession issues; to provide diversity and availability of the sources for concession projects funding; etc.