Origin of the concession agreement, their use, main problems and challenges

In economy of some foreign countries the concept of state-private partnership is widely applied as an alternative to privatizations of objects. Concessions are the most developed and perspective form of state private partnership. Concessions, being an element of economic policy of the Russian and Soviet governments, were actively used in the second half of the XIXth — the beginning of the XXth. In modern Russia the implementation this form of state-private partnership as concession underestimated. Concession agreements provide not only an attraction of investments into economy, but also provide an effective utilization of the property which is in the state or municipal ownership. Besides, this form of interaction between the private sector and the state immensely improve the quality of goods, labour, services offered to costumers. For maintenance of effective functioning and the further development of concession, the state as a party of state-private partnership should accept a number of stimulating measures. The authors of the article reviewed the concept of the concession agreement, the history of its origin, development stages, and different models of concession agreements, and risks that may arise in the process of adoption of such solutions. For completeness of understanding the experience of Great Britain was considered like mechanism of implementation of concession agreements in the construction of social infrastructure through public-private partnerships.