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The Main Directions of Cooperation Between the State and Private Business in the Field of Housing Construction and Housing and Communal Services

Abstract

Public-private partnership is a legally fixed form of interaction between the state and private business in relation to state and municipal property. The sphere of housing and communal services includes real estate objects of housing stock and engineering networks. The operation of residential facilities is carried out by management organizations or homeowners' associations. Engineering networks are serviced by municipal enterprises. The problem of housing provision and housing conditions improvement remains acute. Increasing the availability of housing is possible with mass construction and the availability of sufficient capital investment. In the context of a systemic economic crisis, large investment project financing from budgets of all levels is very difficult. High depreciation of housing and communal services, insufficient budget financing require the search and justification of the mechanisms for improving the functioning of this sphere in principle. One of the approaches to solving the problem of the restoration of fixed assets is public-private partnership (PPP), which links the interests of municipalities, private operators and consumers of public services. The forms and degree of cooperation between the state and business are determined by an assessment of its effectiveness, analyzing the advantages and disadvantages for each of the parties. For municipal government of the city, public-private partnership means the possibility of attracting private capital to the financing and management of real estate remaining in state ownership. To business, state-private partnership allows you to receive a reliable profit on the objects of state property or in the provision of services that are assigned to the state. The main advantages of PPP for a partner from the state are: the distribution of risks between partners, the reduction of the budget, the choice of a private investor, the planning and control of the results of its production and financial activities, the possibility of increasing the volume of the gross regional product. The main advantages of using PPP mechanisms for a private investor are: conclusion of long-term contracts with an invariable market and state obligations to ensure minimum profitability indicators, minimizing the risks of the state impact on the business of a private partner, strengthening the business reputation of the company. Negative aspects of PPPs for the partner of the state are: the asymmetry of information, the hidden intentions of the partner, the transfer of risks the danger to the public sector. Negative aspects of PPPs to partner with the private sector are: technical risks relating to the construction, political and legal risks, economic and financial risk, force majeure. The effectiveness of public-private partnership in the modernization of housing and communal infrastructure can be achieved by developing and implementing an integrated strategy for the development of public-private partnership in the sphere of housing and communal services.

About the Authors

R. M. Bryzgalova
СГУПС
Russian Federation


I. D. Matyukhina
СГУПС
Russian Federation


I. V. Yanshina
СГУПС
Russian Federation


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For citations:


Bryzgalova R.M., Matyukhina I.D., Yanshina I.V. The Main Directions of Cooperation Between the State and Private Business in the Field of Housing Construction and Housing and Communal Services. Bulletin of Siberian State University of Transport. 2017;(2):27-33. (In Russ.)

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ISSN 1815-9265 (Print)