Concession Model In Moscow-Kazan High-Speed Railway:Comparative Case Study

Modern strategic management involves the development of the formulation and implementation of the main goals and initiatives to solve certain long-term tasks in the enterprise.If we talk about large infrastructure projects aimed at developing both internal infrastructure and external integration between countries,we can say that in different countries the system of approaches and development,its organizational and legal support,as well as the integration of foreign positive experience in implementation of such projects is not equally developed.For example,while in Russia such large-scale projects are carried out only with the help of the state,China already has experience of cooperation between the State and society in the construction of infrastructure facilitiesTask of creating a single transit space covering the territory from Moscow to Beijing has been repeatedly set as the goal of cooperation between China and Russia.The project of "Moscow-Kazan" high-speed railway construction is the first step of this cooperation,and the fate of all subsequent cooperation between the countries depends on its implementation.Today there is a need to develop a methodology to effectively apply international experience in rail transport projects.Hence,researches on the adoption of positive international experience in the implementation of large-scale infrastructure projects will not only be useful for countries that do not have this experience,but will also help to integrate more quickly into the global transport networkThis study,by way of comparative analysis of the financial and organizational-legal schemes of European and Russian-Chinese projects,tries to help highlight in more detail the problems arising in the implementation of large infrastructure projects in general,and this pilot project of cooperation between two countries in particular.Purpose of the study is to develop recommendations for improving the organizational,legal and financial aspects of the implementation of the project "Moscow-Kazan",based on comparative analysis with the conditions of the foreign project HSL-Zuid in Netherlands,as well as factors affecting this process within the concession model as the most reasonable form of international and public-private partnership.Theoretical basis of this study is represented by the typology of concession agreements developed by E.A.Malitskaya on the basis of concession's organizational and legal features.The main method used in this research is the case study method as an active problemsituation analysis method of specific problems and situations.The method of organizational and legal models comparative analysis on concession was based on the use of a criteria evaluation system developed to assess the conditions of infrastructure projects by A.G.Zeldner.Economic efficiency of HSR "Moscow-Kazan" project's implementation to the concessionaire and the grantor were determined on the basis of the methodology proposed by N.F.Tsaneva.According to the results of the study,the following conclusions were obtained:1)The optimal organizational and legal model for the implementation of the MoscowKazan HSR project is a mixed corporate-concession model with the possibility of delegating some of the powers of the Concedent to agents to use the advantages of the concession-agent model.This model was tested,in particular,in the HSL-Zuid project in Netherlands and proved its viability;2)Comparison of financial parameters characterizing the financial model of the Moscow-Kazan HSR and the HSL-Zuid implementation in Netherlands shows the underestimation of the capital costs and risks of the Russian-Chinese project.The Russian project is more profitable not only for investors on the rate of return criterion,but also for theparticipation of the State in distribution of the overall economic effect calculated by the proposed mathematical model;3)To finance the joint Russian-Chinese Fund,it is proposed to change the scheme of Russian and Chinese government's financial contribution in the amount of 150 billion rubles from each sides,provided for by the investment Memorandum,with the issue of infrastructure bonds in the amount of 150 billion rubles with the approval of their redemption for further implementation by the Russian "Vnesheconombank",which has experience of participation in such projects;4)Specific recommendations for improving Russian legislation for the implementation of the corporate concession model with the possibility of delegating some of the powers to JSC "High-Speed Rail Lines" as an agent are proposed.According to the results of this study,a list of additions was compiled,which will help to improve the organizational and legal model of cooperation;a list of key factors for the successful implementation of the modified model;a scheme of potential cooperation between Russia and China in the implementation of this project as well as subsequent projects was formed.