Use of the concession agreements for the attraction of investments into the urban improvement

Abstract

The objective of this research is to develop some recommendations on the creation of comfortable public vacation spots (parks, etc.), which would be attractive to inhabitants and at the same time could attract investments of small business through cooperation of the authorities and entrepreneurs. The paper supports the idea about the possibility of the use of the concession mechanism for this purpose. Though such projects are still rare in the Russian Federation at the moment, the authors study few successful projects, implemented, proving their viability. The schemes of implementation of the projects of the urban improvement due to concessions, works sharing, responsibility sharing as well as the allocation of project risks between the participants are considered in this paper. The principles, which make the projects effective, are formulated. The results, received within this research, can be useful both for the authorities during drawing up the regional and municipal programmes of urban improvement and development, and for the private investors, interested in such investments.