Possible alternatives for legal relations in the process of attracting private investment: concessions and public-private partnerships

Subject. The main subject of the investigation presented in the article is legal relations arising in the process of attracting private investments involving concessions or public-private partnerships for the benefit of the implementation of governmental projects. Today, to solve numerous tasks associated with the implementation of infrastructure projects, the government is actively attracting private investors, which involves using similar financing mechanisms. Russian legislation provides for two basic forms: concessions and public-private partnerships. Each format has its own areas of application, its advantages and disadvantages. Objectives. A comparative analysis of options for joint implementation of projects involving public-private partnerships and concessions. Methods. The analysis considered the opportunities provided by the legislation to implement specific mechanisms involving public-private partnerships or concessions. In addition, the study involved a comparative analysis of each form of tender procedure, tender requirements, terms and conditions of the agreement, the possibilities for tariff regulations and the attraction of loaned funds, and other aspects. Results. According to the results of the comparative analysis, the main advantages and disadvantages of each approach to attracting private financing were identified. The study also provides the analysis of case studies for similar agreements currently implemented in Russia. Following the results, recommendations were made for the implementation of governmental projects in different areas of the economy. The analysis allowed identifying the main sectors and areas of activity for which it is advisable to use the format of concessions to implement a project involving the attraction of private investors and the sectors and areas in which the format of a public-private partnership is preferable. Conclusions. An important aspect of the analysis is the assessment of involved risks for the state and private investors, which arise in case of using each mechanism of attracting private investments for governmental projects. The article concludes with recommendations regarding the use of each format of attracting private investors to implement governmental infrastructure projects in Russia in different spheres of the economy.