Features of investment projects financing organization


Investment projects financing in Russia is still rather restricted. Self-financing, budgetary financing, incorporating, credit financing (including leasing) are distinguished in the world practice in general. However self-financing is not always actual (especially in case of large-scale projects implementation). Budgetary financing represents less available method of funds attraction as this type of investment is carried out within the federal investment program and competitive investment resources distribution program.

The most widespread method of the project financing organization is incorporating most often used at original stages of investment projects because of full funds application possibility in  the beginning of project implementation already.

As for credit financing, it is also a widespread method of financial resources attraction into a new project. Sometimes credit financing is represented in the form of leasing — the model of financial resources attraction allowing to minimize the property tax, as property rights belong to the lessor, and in case of property acceptance on balance by the organization - to use the accelerated depreciation mechanism.

However funding mechanisms for investment projects are not completed with the given above. So, in Russia it is planned to use such mechanism of public-private partnership as Tax Increment Financing (TIF) within which return of funds from investors is supposed at the expense of tax revenues in the region. So, this mechanism is supposed to be used for complex territories development projects implementation that is actual in the Far East. Besides, this mechanism operates already in Kaliningrad Region — in case an autocluster creation project implementation in which the Kaliningrad automobile holding , Vnesheconombank and the Federal Centre of Project Financing (FCPF) participate. It is the country's first project where the mechanism of the postponed payments is used.

It is necessary to pay attention that implementation of the TIF mechanism in Russia can meet several difficulties associated to the legislation imperfection. So, creation of special normative and legal regulation of its application order together along with change of the budgetary and tax law are necessary. Besides, it must be kept in mind that unlike foreign experience of TIF application in Russia the TIF zones will not be created however it is initially admitted  that infrastructure, industrial cluster, services market and so forth would be recovered on its territory. Besides, organizations , controlling these zones will not be created also.