An original methodology for evaluating the effectiveness of the use of concession mechanisms based on the stakeholder theory

2021 ◽  
Vol 27 (12) ◽  
pp. 2807-2829
Author(s):  
Vadim I. KHALIN
Keyword(s):  
Stakeholder Theory ◽  
Rating Scale ◽  
Investment Project ◽  
Social Institutions ◽  
Transport Infrastructure ◽  
Preliminary Review ◽  
Successful Implementation ◽  
Investment Activity ◽  
Investment Projects ◽  
Project Assessment

Subject. The article addresses the methodology for evaluating the effectiveness of the use of concession mechanisms based on the stakeholder theory in investment activities. Objectives. The purpose is to develop methodological approaches to assessing the effectiveness of investment process financing, using the concession mechanisms. Methods. I employ both general scientific methods of cognition and analytical, economic and statistical methods of information processing, based on the analysis of existing concession agreements. Results. The study defines a methodology for evaluating the effectiveness of the use of concession mechanisms on the basis of the theory of stakeholders. It enables to determine the limits and prospects for investing private investor's funds, taking into account the evaluation rating scale. Conclusions. The stability of investment activity is an important aspect. The analysis of the existing preliminary review of the current economic state of concession agreements revealed negative cause-and-effect relationships, which are associated essentially with the lack of awareness of the parties of successful implementation of investment projects. My unique methodology for evaluating the effectiveness of the use of concession mechanisms based on the stakeholder approach aims at solving the above-mentioned problem and increasing the efficiency of investment project financing through a preliminary project assessment. It can be used in investment activities, in particular, in preparing and implementing concession agreements in the housing and utilities sector, construction of social institutions and transport infrastructure facilities.

scholarly journals EXPLANATION OF THE BENEFIT OF THE INVESTMENT PROJECT ON THE CASH BASIS / IZRAŽAVANJE KORISTI INVESTICIONOG PROJEKTA NA GOTOVINSKOJ OSNOVI

2019 ◽  
Vol 16 (2) ◽  
Author(s):  
Dijana Kremenović
Keyword(s):  
Growth And Development ◽  
Investment Decision ◽  
Investment Decisions ◽  
Investment Project ◽  
Capital Budgeting ◽  
Investment Activity ◽  
Investment Projects ◽  
Investment Process ◽  
Additional Value ◽  
Cash Basis

Decisions about the choice of investment projects can significantly affect the destiny of the company, its competitive position in the market, market participation, the direction of further technological development, and even the survival of the company. The aim of this paper is, in the conditions of the current economic reality, to point out the significance of the choice of methods of expressing the benefit of an investment project. In this sense, we have explained in detail all currently applicable methods for assessing the viability of investment projects on a cash basis, comparing the good and bad sides of all the methods presented. In this connection, we especially pointed out the importance of the time value of money. The decision to apply the capital budgeting process, certainly, is the decision of the company itself. However, the outcome of investment activity is borne by a wider circle of consumers, which should be a sufficient reason to encourage education and the application of current methods in this area. If you want to realistically look at the investment process and evaluate the justification of an investment project, it is necessary to identify and analyse the effects of exploitation of a particular investment. In order to ensure the realization of the company’s basic strategic goals and thus ensure its growth and development, it is necessary to make decisions in which the company will focus its investment activities on this investment projects whose effects will ensure the highest return on investment. This work deals with the complex issues of making adequate investment decisions using a method for assessing the viability of investment projects on a cash basis. Bearing in mind the significance of investment activity, we can conclude that for the purpose of making a good investment decision, it is necessary to realistically look at the entire investment process and assess the justification of the implementation of the investment project. In this sense, we identify, measure and quantify the overall effects of the realization of a particular investment. Capital budgeting for the purpose of making an investment decision today is a generally accepted concept in developed economies. There is no doubt that there are many disagreements regarding the choice of the methods of assessing the viability of investment investments, and then the selection of criteria within a certain method. However, it is quite certain that the rich experience of developed countries undoubtedly points to the need for capital budgeting, investment project management, with particular emphasis on the use of discounted methods for assessing the viability of investment investment and respecting both economic and non-economic effects. Implicit benefits that the application of capital budgeting brings to the overall growth and development of the company, in terms of reducing uncertainty in making investment decisions, easier ranking of investment projects, exact measurement of expected benefits, transparency of investment activity criteria, attracting investors and ultimately creating additional value and greater degree of realization of strategic company goals.With this work, we pointed out the fact that capital budgeting is crucial in the process of making an investment decision and in that way has influenced enterprises to seriously deal with the choice of the method of estimating the profitability of investment projects that will surely result in additional value for the company.

scholarly journals Investment activity at the objects of specially protected natural territories of the Tyumen region

2020 ◽  
Vol 157 ◽  
pp. 03003
Author(s):  
Olga Bogdanova
Keyword(s):  
System Analysis ◽  
Investment Project ◽  
Performance Criteria ◽  
Investment Activity ◽  
Object A ◽  
Investment Projects ◽  
Protected Natural Area ◽  
Observation Method ◽  
Ecological Tourism ◽  
Specially Protected Natural Territories

This article discusses the possibilities of investment activities on the territories of objects of specially protected natural territories. The analysis of existing objects with identification of possible types of business activity within the current legislation is carried out. The purpose of this study was to determine the main directions of development of investment activity in territories of especially protected natural objects, and to offer basic stages of the evaluation presents the calculation of key performance criteria as a result of implementation of investment projects of ecological tourism. Criteria for ecological tourism are considered and an algorithm for implementing an investment project on the territory of an object, a specially protected natural area, is developed on the example of the Tyumen region. When writing the article, we used the General scientific method (analysis, synthesis, logical method), statistical method, sample observation method, and system analysis. The main results of this study can be considered the development of an algorithm for evaluating investment projects in specially protected natural areas, as well as methods for their evaluation.

scholarly journals Methods of multi-criteria evaluation of economic efficiency of investment projects

2021 ◽  
pp. 93-98
Author(s):  
Oksana Isai ◽  
Olha Romashko ◽  
Andriy Semenov ◽  
Tetiana Sazonova ◽  
Ivanna Podik ◽  
...  
Keyword(s):  
Economic Efficiency ◽  
Investment Project ◽  
Optimal Investment ◽  
Stable Operation ◽  
Investment Activity ◽  
Investment Projects ◽  
Advantages And Disadvantages ◽  
Investment Option ◽  
Fierce Competition ◽  
High Level

In the context of globalization and fierce competition in world markets, the high level of investment activity in the country is a key to economic and innovative development. The high level of wear and tear of fixed assets in developing countries gives special relevance to solving the problem of attracting investments for production development. Hence, for the investment management system choosing an optimal variant among several available investment projects is one of the most responsible stages of ensuring the stable operation and sustainable development of an enterprise. In this regard, the aim of the article is to develop a comprehensive multi-criteria approach to choose the best investment option. The article analyzes the existing methodological approaches to assess the economic efficiency of the investment projects, identifies their advantages and disadvantages. A multi-criteria method of investment project evaluation is proposed, which is characterized by the absence of restrictions on the number of individual evaluation indicators and the possibility for the investor to determine the significance of every indicator using weights independently. The use of the proposed methodology by enterprises will improve the quality of management decisions at the stage of choosing the optimal investment option.

scholarly journals On the reliability of investment risk assessments

Dependability ◽  
2019 ◽  
Vol 19 (3) ◽  
pp. 47-52
Author(s):  
A. I. Dolganov
Keyword(s):  
Mathematical Model ◽  
Risk Estimation ◽  
Investment Project ◽  
Main Group ◽  
Probabilistic Methods ◽  
Successful Implementation ◽  
Investment Risk ◽  
Investment Projects ◽  
Project Completion ◽  
Contractual Obligations

The paper examines the reliability of investment risk estimates based on probabilistic realizations of purpose-designed scenarios. The calculations of the probabilities of scenario realization were based on logical and probabilistic methods. The reliability of risk assessment is understood as the probability of successful completion of a project, fulfillment of all contractual obligations: construction in compliance with the architectural and engineering design and quality requirements, within the contractual period and approved budget. Investment risks were estimated based on eight primary scenarios. The realization of the risks of the main group depended on the realization of the various numbers of risk scenarios of each subgroups in the main group. For instance, the first scenario of the main group consisted in the risk of faulty project ROI analysis and the risk of underestimated construction budget. The second one consisted in the risk of underestimated construction budget and risk associated with the selection of the basic flowsheet and primary process parameters, etc. The risks of each subgroup could be obtained by means of expert estimations or, in case of sufficient statistical data, based on the actual distributions. A mathematical model was developed for the purpose of a computerized solution. The mathematical model also allowed identifying such dependability factors as “weight”, “significance” and “contribution” of each risk in the success of an investment project (reliability structure of investment risk estimation). The analysis of calculation data enabled the identification of the probability of successful project completion (reliability), the risks that are the most important, significant and having the largest contribution to the successful implementation of investment projects. Also, the risks were identified that have the least pronounced effect on the successful implementation of an investment project.

scholarly journals Feasibility and design study of investment projects in metallurgy by the example of OJSC «BSW – Management Company of the Holding «BMC»

2020 ◽  
pp. 29-35
Author(s):  
A. V. Karmanovich ◽  
S. A. Mozgov
Keyword(s):  
Systematic Approach ◽  
Investment Project ◽  
Metallurgical Industry ◽  
Technical Condition ◽  
Transport Infrastructure ◽  
Engineering Systems ◽  
Investment Projects ◽  
Investment Justification ◽  
Stage Development ◽  
Under Construction

The Republic of Belarus has defined requirements for project management, which are recommended for all participants involved in project activities, and provide for the organization of a systematic approach to the development and implementation of projects involving architectural and construction activities for the construction, reconstruction and restoration of buildings and structures. Comprehensive pre-investment study of the project reduces the risk of starting an inefficient project, because in the process of developing the investment justification: the costs associated with construction and installation work are defined more accurately; engineering-geological and geodetic surveys of the territory under construction and technical conclusions based on the results of the survey of the technical condition of buildings, internal and external engineering systems of buildings are taken into account; all principal decisions are made on the supply of engineering and transport infrastructure; the project’s impact on the environment is assessed, and public discussions are held on the environmental impact assessment report with the state environmental expertise; determine the possibility and options for adjusting the parameters of the investment project, the adopted technology and architectural and planning solutions in order to improve the effectiveness of the project, if the data obtained indicate insufficient profitability of the project.This article describes the main provisions on the implementation of the pre-investment stage (development of pre-project documentation, business plan) of an investment project implemented in the metallurgical industry.

scholarly journals Fiscal Feasibility Assessment Applied to Transport Infrastructure Projects

2016 ◽  
Author(s):  
Lílian Dos Santos Fontes Pereira ◽  
Joaquim José Guilherme de Aragão ◽  
Yaeko Yamashita ◽  
Rayssa Brandão
Keyword(s):  
Feasibility Studies ◽  
Fiscal Sustainability ◽  
Transport Infrastructure ◽  
Infrastructure Investment ◽  
Special Focus ◽  
Investment Projects ◽  
Feasibility Assessment ◽  
Project Assessment ◽  
Fiscal Impacts ◽  
Fiscal Balance

The demand for transport infrastructure investment is a latent issue for several countries, mainly for developing countries. However, investments in major logistics projects should be carefully evaluated, in order that their deployment induces development without endangering fiscal sustainability by excessive public indebtedness. Fiscal accounting practices used currently in the feasibility studies of transport infrastructures in Brazil are very limited, as they do not consider indirect and induced effects of the infrastructure investment in the fiscal evaluation. In addition, the corresponding influence area has not an established delimitation method. The aim of the present paper is to develop a model for calculating economic and fiscal impacts of transport infrastructure investment projects that includes the direct, indirect and induced effects within a reference area do be determined. First, different project assessment guides in Brazil and abroad are examined with a special focus on the assessment of economic and fiscal impacts of the projects. Based on the assessment experience and on the definition of the fiscal balance of an infrastructure project, the next step sets up a framework for the calculation of the impacts, using more simplified data.DOI: http://dx.doi.org/10.4995/CIT2016.2016.4116

scholarly journals SELECTION OF INVESTMENT PROJECTS IMPLEMENTATION OPTIONS

2020 ◽  
pp. 160-165
Author(s):  
A. V. Kozlovsky ◽  
N. A. Moiseenko ◽  
O. E. Astafieva
Keyword(s):  
Construction Industry ◽  
Implementation Process ◽  
Investment Project ◽  
Investment Efficiency ◽  
Construction Sector ◽  
Investment Activity ◽  
Investment Projects ◽  
Economic Justification ◽  
Reduced Costs ◽  
Selection Of

The main unresolved issues of choosing the most effective investment projects aimed at introducing innovative technologies have been considered. The traditional indicators of investment efficiency have been analysed. The expediency of using the indicator of the total reduced costs necessary for the implementation of the project has been substantiated. Attention has been paid to the possibilities of public-private partnership in innovation projects. The issues of shares distribution between participants in innovation and investment projects and the use of such objects have been reviewed. The current situation in the investment and construction sector of the economy has been assessed and ways to solve the main problems of investment activity in the construction industry have been outlined. The expediency of creating a mechanism for economic justification of the investment project implementation process, including the creation of reserve funds, has been substantiated. Recommendations for using the indicator of the of the investor’s total stated costs have been given.

OPTIMAL SELECTION METHOD FOR INVESTMENT PROJECT

2010 ◽  
Vol 8 (1) ◽  
pp. 21-36
Author(s):  
Vytautas Jonas Žilinskas
Keyword(s):  
Investment Project ◽  
Financial Economic ◽  
World Market ◽  
Modern World ◽  
Investment Activity ◽  
Investment Projects ◽  
Investment Control ◽  
Modified Method ◽  
Complex Evaluation ◽  
Priority Allocation

Under the modern world market conditions the investment activity of enterprises is increasing. Therefore, one of the main aspects of the investment activity guarantee is a selection and apprehension of the main principles of the investment control and possi-bilities of different uses of the investment instruments. For the optimum selection of the investment projects it is suggested to use a formalistic experimental author’s modified method of priority allocation and selection, which gives an opportunity to evaluate the investment project according to different partial criteria and their meaning of importance. Working out this way a complex evaluation of each chosen investment project is obtai-ned. Using the suggested MPSP (modified method of priority allocation and selection) the investment projects are evaluated with qualitative and quantitative criteria. So this method can be used when qualitative criteria of evaluation are predominated. Formalis-tic methods of analysis cannot be used to establish quantitative criteria and those small projects when it is relatively too expensive to apply other usual methods of the financial economic analysis. Method MPSP selection is universal and ordinary so it can be used to establish the efficiency of different projects, to classify projects, to model the strategy of the state economy. If you like to control the realization of the chosen investment project more effectively and rationally it is suggested to use PERT (Program Evaluation and Review Technique).The main control elements of the investment project are reviewed in the article using PERT which is useful to draw up an optimistic reticular schedule of the investment work implementation.

INVESTMENT POTENTIAL DEVELOPMENT AND REDUCTION OF INVESTMENT RISKS IN THE TOMSK REGION

2020 ◽  
Vol 10 (8) ◽  
pp. 1615-1625
Author(s):  
E.P. Shipunova ◽  
◽  
V.V. Konovalov ◽  
O.A. Nesterova ◽  
◽  
...  
Keyword(s):  
Transport Infrastructure ◽  
Special Role ◽  
Investment Climate ◽  
Investment Activity ◽  
Investment Projects ◽  
Current State ◽  
Tomsk Region ◽  
Regulatory Impact ◽  
Tax Payments ◽  
Regional Authorities

The article substantiates the relevance of the topic, taking into account the global areas of work designated by the President of the Russian Federation. The special role of regional authorities in creating conditions for a favorable investment climate was noted. The analysis of the current state of the Tomsk region’s investment attractiveness is carried out; the potentials and risks of the region are determined. We have identified the “weaknesses” or the risks for attracting investment to the Tomsk region, namely: - infrastructural risk: low density of transport infrastructure, uneven development of communication infrastructure, deterioration of the communal infrastructure; and also the small volume of the intraregional market. The legal support of investment activity is considered in detail, including federal and regional aspects. The characteristic of the “basic” and “special” regional laws, regulating investment activities in the region, is given. The forms and mechanisms of state support for investors in the Tomsk region are presented, including subsidies and tax incentives for investors, the provision of land plots with infrastructure for the placement of investment projects, the functioning of the infrastructure for supporting entrepreneurship, a simplified form of land provision (for rent without tenders), the procedure for assessing the regulatory impact of regulatory legal acts affecting business issues, etc. The directions for the development of federal and regional legislation in order to improve the investment climate are outlined, including decriminalization of certain acts; systematization and consolidation of uniform rules for the introduction, change and collection of non-tax payments from entrepreneurs; “prevention, not punishment”; introduction of long-term tariff setting; simplification of the PPP (public-private partnership) mechanism and concessions for infrastructure projects; formation of legislation for the “digital Economy”; formation of legislation for development in the areas of the National Technology Initiative. At the end of the article, well-founded conclusions are made and proposals are made to increase the investment potential and reduce investment risks.

scholarly journals DYNAMIC PROGRAMMING AS A TOOL TO SUPPORT DECISION-MAKING FOR THE INVESTMENT PROJECT PLANNING

2018 ◽  
pp. 38-47
Author(s):  
Анастасия Архипкина ◽  
Anastasia Arkhipkina
Keyword(s):  
Dynamic Programming ◽  
Investment Project ◽  
Project Planning ◽  
Dynamic Programming Method ◽  
Good Tool ◽  
Investment Activity ◽  
Economic Space ◽  
Investment Projects ◽  
Russian Economy ◽  
The Russian Federation

Investment activity is inherent in any enterprise, as it is one of the most important aspects of its functioning, as investment decisions are often inextricably linked with the rest of the company's activities. In addition, investments form a promising organizational structure of the company and its investment culture. The most complicated geopolitical situation in the world, aimed at isolating the Russian Federation in the international economic space, leads to the need for a qualified assessment of the possibilities of implementing investment projects in the context of increasing uncertainty and risks. In this regard, the relevance of tasks to improve the efficiency of management decisions plays an important role in ensuring economic growth in the sectors of the Russian economy. The use of dynamic programming method can be a good tool for finding the optimal distribution of investments in the absence of the possibility of full financing of the formed project

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