PROJECT FINANCING AND ITS ROLE IN THE REVITALIZATION OF INFRASTRUCTURE DAMAGED OR DESTROYED BY WAR
Анотація
Introduction. The need for post-war reconstruction and further development of the country increases the interest in summarising foreign experience of using project finance and assessing the possibilities of its application in Ukraine, taking into account the strategic priorities of the state, its national characteristics and global challenges. The urgency of its implementation is heightened by the growing scale of damage and destruction of infrastructure against the backdrop of a permanent budget deficit, which necessitates the creation of favorable legislative, institutional, informational and financial conditions for attracting investment.
The purpose of the article is to summarise scientific approaches to disclosing the essence and characteristics of project financing, and to determine the prospects for using its sources in the process of revitalizing infrastructure facilities damaged and destroyed by the full-scale invasion of Ukraine by the Russian aggressor.
Results. The article highlights the content of the concept of “project financing” and identifies its inherent features, including: the creation of a special project company, the presence of a large number of participants, the proportional distribution of risks and profits among all stakeholders, and the use of a wide range of financial instruments. The author investigates the dynamics of project financing sources in the regions of the world based on the data of analytical agencies “IJ Global” and “Thomson Reuters”. The expediency of project financing for the revitalization of infrastructure facilities is substantiated, given the significant scale of destruction caused by hostilities in Ukraine. Attention is focused on the reasons that impede the effective implementation of revitalization measures. The algorithm for forming a strategy for the revitalization of war-damaged and destroyed infrastructure facilities with the involvement of project financing sources for the implementation of socially important projects, determining the forms and conditions of interaction between participants is outlined.
Conclusions. The research found that the most effective financial form of infrastructure restoration is project financing, which allows for the implementation of capital-intensive projects with minimal financial participation of its initiators. The success of revitalization depends on the legislative and institutional conditions created to attract a wide range of sources of project financing – bank loans, project bonds, investments from international financial institutions and businesses. The basis for the implementation of these tasks should be the National (Regional) Strategy for the revitalization of infrastructure damaged and destroyed by war, which will help to outline the vectors of Ukraine's reconstruction.
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DOI: https://doi.org/10.35774/sf2024.03.008
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West Ukrainian National University