Transaction Costs and Prospects for Public-private Partnership in the Russian Mineral Resourse Sector
An analysis is presented for the current development level of the institution of public-private partnership (PPP) in the mineral resources complex ofRussia. The main focus is on the two PPP models that are most widely used inRussia. The first model is production sharing agreement (PSA). An analysis...
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| Format: | Article |
| Language: | English |
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EconJournals
2017-03-01
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| Series: | International Journal of Economics and Financial Issues |
| Subjects: | |
| Online Access: | https://dergipark.org.tr/tr/pub/ijefi/issue/32002/353212?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| _version_ | 1797919662412922880 |
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| author | Irina Glazyrina Sergey Lavlinskii |
| author_facet | Irina Glazyrina Sergey Lavlinskii |
| author_sort | Irina Glazyrina |
| collection | DOAJ |
| description | An analysis is presented for the current development level of the institution of public-private partnership (PPP) in the mineral resources complex ofRussia. The main focus is on the two PPP models that are most widely used inRussia. The first model is production sharing agreement (PSA). An analysis is conducted of the PSA concept. TheSakhalin2 project is used as an example to show how an inadequate preparation of PSA terms and high transaction costs (TC) can lead to a breach of contract. The second model is applied in production infrastructure development projects financed by the Investment Fund of Russia. This is a Russia-specific model; thus, authors use a special toolkit for its assessment in the paper. Analysis shows that important factor of the project efficiency is an institutional environment. Weakness of institutions and lack of low cost instruments of conflict resolution might be the cause of high transaction costs and environmental damage. The technique applied in the efficiency analysis of concrete partnership arrangements is presented using the examples of the PPP models practiced in Krasnoyarsk Krai and Transbaikal region in Siberia. It can be applied in designing a raw-material base development program involving PPP arrangements. The problem solution generates a cost-sharing arrangement between the state and the private investor, making it possible to optimize the majority of Russian PPP models. |
| first_indexed | 2024-04-10T13:50:09Z |
| format | Article |
| id | doaj.art-adf6d59c473443e6acc4ba468eeff262 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T13:50:09Z |
| publishDate | 2017-03-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-adf6d59c473443e6acc4ba468eeff2622023-02-15T16:10:47ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382017-03-01714034131032Transaction Costs and Prospects for Public-private Partnership in the Russian Mineral Resourse SectorIrina GlazyrinaSergey LavlinskiiAn analysis is presented for the current development level of the institution of public-private partnership (PPP) in the mineral resources complex ofRussia. The main focus is on the two PPP models that are most widely used inRussia. The first model is production sharing agreement (PSA). An analysis is conducted of the PSA concept. TheSakhalin2 project is used as an example to show how an inadequate preparation of PSA terms and high transaction costs (TC) can lead to a breach of contract. The second model is applied in production infrastructure development projects financed by the Investment Fund of Russia. This is a Russia-specific model; thus, authors use a special toolkit for its assessment in the paper. Analysis shows that important factor of the project efficiency is an institutional environment. Weakness of institutions and lack of low cost instruments of conflict resolution might be the cause of high transaction costs and environmental damage. The technique applied in the efficiency analysis of concrete partnership arrangements is presented using the examples of the PPP models practiced in Krasnoyarsk Krai and Transbaikal region in Siberia. It can be applied in designing a raw-material base development program involving PPP arrangements. The problem solution generates a cost-sharing arrangement between the state and the private investor, making it possible to optimize the majority of Russian PPP models.https://dergipark.org.tr/tr/pub/ijefi/issue/32002/353212?publisher=http-www-cag-edu-tr-ilhan-ozturkmineral resources public-private partnership production sharing agreement transaction costs. |
| spellingShingle | Irina Glazyrina Sergey Lavlinskii Transaction Costs and Prospects for Public-private Partnership in the Russian Mineral Resourse Sector International Journal of Economics and Financial Issues mineral resources public-private partnership production sharing agreement transaction costs. |
| title | Transaction Costs and Prospects for Public-private Partnership in the Russian Mineral Resourse Sector |
| title_full | Transaction Costs and Prospects for Public-private Partnership in the Russian Mineral Resourse Sector |
| title_fullStr | Transaction Costs and Prospects for Public-private Partnership in the Russian Mineral Resourse Sector |
| title_full_unstemmed | Transaction Costs and Prospects for Public-private Partnership in the Russian Mineral Resourse Sector |
| title_short | Transaction Costs and Prospects for Public-private Partnership in the Russian Mineral Resourse Sector |
| title_sort | transaction costs and prospects for public private partnership in the russian mineral resourse sector |
| topic | mineral resources public-private partnership production sharing agreement transaction costs. |
| url | https://dergipark.org.tr/tr/pub/ijefi/issue/32002/353212?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| work_keys_str_mv | AT irinaglazyrina transactioncostsandprospectsforpublicprivatepartnershipintherussianmineralresoursesector AT sergeylavlinskii transactioncostsandprospectsforpublicprivatepartnershipintherussianmineralresoursesector |