Problems of Running Financial and Economic Modeling in Preparation of Investment Projects of Municipal-Private and Public-Private Partnership

Public-private and municipal-private partnerships were initially seen as a direction for the implementation of large investment projects that attract billions of dollars in investment. In fact, the recent years’ experience shows that most of them are implemented at the municipal level, and the investment volume does not exceed 10 million rubles. Attraction of small private investors leads to problems of tendering, one of the conditions of which, in particular, is the development and assignment of the project financial and economic model. Despite the fact that a regulatory framework specifying the general requirements for projects has been formed, in reality, the lack of clear detailing in areas, instructions for project development, and industry recommendations leads to a large number of errors in calculations and to rejection of projects on the formal basis of inconsistency with the assessment methodology. This article presents the most typical problems of running financial and economic modeling for the project, identifies the problems of the regulatory framework, examines the industry specificity. The market of professional players in this area is analyzed. Based on the study, recommendations are given for a more detailed regulation of the procedures for financial and economic modeling in the preparation of public-private and municipal-private partnership projects.