Assessment of opportunities and limitations for public-private partnership in utility infrastructure projects in regions of Russia

Public-private partnership (PPP) is one of the promising mechanisms for attracting private funds for infrastructure development. In modern Russia, projects based on the principles of PPP have been implemented for more than 17 years, but so far this topic has not found sufficient coverage in geographical research, although in general experience has been gained in assessing the effects of the implementation of infrastructure projects, and in economics several significant works have been devoted to the application of PPP. In the article, using the example of communal infrastructure, the author presents the concept of a methodology for assessing the regions of Russia on the feasibility of developing infrastructure in them using PPP mechanisms, assessing the opportunities and limitations for the development of such infrastructure. As part of the methodology, an integral index is proposed based on a set of indicators that reflect the region’s need for the development of communal infrastructure, its institutional, budgetary, and financial capabilities, and other factors. Based on the results of the analysis, six groups of regions were identified depending on the final score of the integral index. As a rule, the most economically developed regions, including the largest industrial and resource-producing regions, have the best opportunities for implementing PPP projects, primarily due to the increased competencies of the responsible authorities and the orderliness of the budget system. A definition of PPP is put forward as an institutional innovation that spreads along the center-periphery model. Also, based on the results of the study, proposals are put forward for the development of PPP in regions lagging behind in terms of capabilities.