Organization of public private partnership in the renovation of urban areas

Peter the Great Saint- Petersburg Polytechnic University, Polytechnicheskaya str., 29, Saint-Petersburg, 195251, Russia

^* Corresponding author: obrastcova.anastasiia@yahoo.com

Abstract

Currently, renovation of industrial areas and search for its organization forms has become a pressing issue for many cities. The introduction of public private partnership as a new form of organization in this sphere encountered the lack and need of consideration of the social factor. Today, this problem is a serious obstacle to the implementation of this type of organization of development of industrial areas of the city. At the same time, none of the existing methods of investment project evaluation, including those implemented under public private partnerships, provides for a comprehensive evaluation of the social factor. Ignoring this kind of evaluation will result in capital risk, higher costs and increased time to complete projects. The authors propose to consider a methodology for evaluating the utilization efficiency of former industrial areas, which is based on principles of integral assessment which includes the social factor. The result of the author's methodology is that it: will, in view of the social factor, determine the amount of total investment as the sum of costs before entering contracts. Investment cost estimation in this case will cease to be spontaneous, while the process of construction organization becomes manageable.