Financing of Public-Private Partnership Projects Based on “Smart Technologies”

Abstract

Purpose: The purpose of this paper is to substantiate the perspectives and to develop a perspective model of financing of public-private partnership projects based on “smart technologies”. Design/Methodology/Approach: For comprehensive research, we perform a complex regression analysis of the dependence of financing of public-private partnership projects and dissemination of smart technologies by the example countries that show the largest volume of financing of public-private partnership projects based on the most recent data. Findings: The research shows that financing of public-private partnership projects based on smart technologies is not very popular in the modern global economic practice and has low effectiveness, due to a range of problems, which include uncertainty and instability of the volume of financing of a project, bureaucracy and corruption during selection of a private partner, complexity of selecting a project for investing, conventionality of projects, complexity of decision making on attraction of borrowed financial resources, and difficulty in distribution of finances, risks, and income. Originality/Value: The above problems could be solved by the developed model of financing of public-private partnership projects based on smart technologies. Its advantages include increased flexibility and use of various “smart technologies” by private and public partners. The model reflects a perspective (improved) algorithm of financing of public-private partnership projects based on smart technologies.