THE CONCEPTS OF PUBLIC - PRIVATE FINANCING OF INFRASTRUCTURE PROJECT (THE EXAMPLE OF CORIDOR VC - FIVE C)

• Published in: Ekonomska istraživanja Vol. 24; no. 1; p. 355
• Main Authors: Ljubic, Frano, Maric, Zeljko, Papac, Nikola
• Format: Journal Article
• Language: English
• Published: Pula Taylor & Francis Ltd 01.03.2011
• Subjects: Bonding; Coal mining; Commercial banks; Economic development; Economic theory; Energy industry; Feasibility studies; Financing; Foreign investment; Highway construction; Infrastructure; Inheritance; Mines; Private sector; Privatization; Project finance; Public private partnerships; Public sector; Realization; Roads & highways; Studies; Tourism; Transportation planning; Bosnia-Hercegovina
• ISSN: 1331-677X

Vc (Five C) corridor is a highway which connects Central Europe with Adriatic sea and Mediterranean countries. This highway covers all B&H territory. That's why this highway is the most important strategic infrastructure project for B&H economic development. The final project creation is still in realizations process. The subject of this paper is analyses of public-private financing possibilities in construction of Vc corridor, its advantages and disadvantages. The goal of this paper is to forecast the optimal model which will fulfill all requirements of all subjects (stakeholders) which are included in this process (i.e. government, private investors, construction firms and social community in whole). Realization of this project by using public-private partnership (concession) would mean opening of the market and realization of the profit in certain for the private sector. The public sector, that is the society, would quickly and efficiently come into inheritance of modern road structure which guaranties better bonding and development.