Financial engineering of infrastructure projects : the concessional mechanism

Abstract

Purpose: The article considers the model of financial engineering, in which financial resources for an infrastructure project are formed based on syndicated loans. Design/Methodology/Approach: The study is based on modern concepts of uncertainty and risk management theories and the concept of digital economy. It includes a system and diagnostic analysis, methods of financial analytics as well as quantitative and qualitative risk assessment methods. Findings: Authors analyzed the investment in the infrastructure projects development in the Russian Federation. The railways' export potential is analyzed and determined to depend on coal and container terminals. Authors highlighted the need for business consolidation and new infrastructure projects based on technologies of digitalization in the transport industry, reviewed the strategic importance of concession agreement for the construction of “Northern Latitudinal Railway”. Practical Implications: The research findings revealed that implementation of large infrastructure projects is capable to render breakthrough effect on GDP and economic growth rates of the Russian Federation. The adjusted experience could be introduced in the transport framework of the Russian Federation and abroad. Originality/Value: The main contribution of this study is in the highlighting features of concessional mechanism in the framework of large infrastructure projects.