Optimal Financial Means and Profit Distribution between Public and Private Partners in PPP Project Realization

Abstract:

The work sets and solves task of optimizing finance distribution between public and private partners in PPP-project realization with forming centralized foundation by both private and public partners. Centralized foundation financial resources can be used in several development destinations, providing several end figures and having several effectiveness figures. Therefore PPP-project participants have a problem of optimal distribution variant for foundation financial resources and got profit. It need elaborating some possible PPP-project realization variants and, for each participant, defining dependence between used investments and potential profit increase, defined as nonlinear function. At result, such formulated task is nonlinear programming task, which solution can be got with dynamic programming. There are elaborated redistribution procedures of optimal profit, got with system effect, between PPP-project realization participants taking into account their financial resources volumes and their effectiveness definition. These procedures take into account possibility of setting payments from participants for financial resources and these payments absence. There are shown practice results of optimal profit distribution and effectiveness calculation both not taking into account payments for given resources and taking them into account, i.e. forms PPP-projects realization effectiveness increase mechanism.

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