PUBLIC-PRIVATE PARTNERSHIP’S TRANSBOUNDARY PROJECTS: CONCEPTUAL FEATURES AND PRACTICAL ASPECTS OF MANAGEMENT

Abstract

The study is devoted to cross-border projects of PPP that is based on the distribution of risks and pooling the resources of a private partner and a public partner (two or more States), in order to build and operate an object or a set of technologically (functionally) related infrastructure objects located on the border of these States. The development of cross-border infrastructure plays a key role in accelerating ties between states. It is carried out both within the framework of cross-border cooperation and in the framework of large-scale international initiatives (One belt – one way). PPP has become a popular mechanism for creating cross-border infrastructure. Nevertheless, this phenomenon has not yet received the attention it truly deserves, especially the balance of limitations and capabilities of management entities under PPP in relation to cross-border infrastructure, as well as the particularity of the risk management of a private partner and public partners (two or more States). The article highlights the specific features of cross-border PPP projects that actually and legally affect the interests and state borders of several States. Problems of management, financing and legal support of cross-border PPP projects have been identified. A set of measures aimed at minimizing these problems and enhancing the attraction of private and public investment in cross-border PPPs has been proposed. For this, several cross-border PPP projects were examined (Russia-China, France-Spain, Malaysia-Singapore, etc.) in detail: their object and subject composition, models, financing structure, risk allocation, essential terms of agreements, participation of international banks in their financing, etc. The article presents  a comparative analysis of cross-border PPP projects and other PPP projects implemented based on interstate cooperation, demonstrates the strength of cross-border PPP projects. Findings can be useful both in defining the area for development of the economic and investment policy of public administration regarding the creation and operation of cross-border PPP facilities, as well as in the further theoretical investigation of public administration problems in this field.