ANALYSIS OF PROJECT FINANCING MODELS: OPPORTUNITIES FOR UKRAINE

Abstract

The article examines modern project financing models that are actively applied in the international practice of implementing infrastructure and investment projects. The essence and features of the most common models are analyzed – Build-Operate-Transfer (BOT), Build-Own-Operate-Transfer (BOOT), Design-Build-Finance-Operate (DBFO), Public-Private Partnership (PPP) and others. The key parameters of each model are identified, including the financing structure, risk-sharing mechanisms, the level of participation of the state and private investors, payback periods, and opportunities for attracting additional sources of capital. Special attention is paid to the comparative analysis of the advantages and disadvantages of the mentioned models, as well as the conditions for their effective application. Based on the generalization of foreign experience, the most effective approaches to project financing in the countries of the European Union, the USA, and Asia are identified. The article substantiates that for Ukraine, given economic instability, the need for infrastructure modernization, and limited budgetary resources, the most promising models are those that ensure effective risk sharing between the state and private investors, stimulate the inflow of foreign capital, and strengthen the financial sustainability of projects. Additionally, it is emphasized that under wartime conditions and during Ukraine’s post-war recovery, project financing becomes particularly relevant. Large-scale infrastructure destruction, budget deficits, and high investment risks necessitate the use of flexible public-private partnership models that combine state support with private investment. Both successful cases of concession projects (particularly in the port sector) and barriers that hindered the implementation of certain initiatives in the transport and utility sectors are examined. This made it possible to formulate practical recommendations for selecting optimal financing models, taking into account current wartime challenges and the prospects of post-war reconstruction. The results of the study can be used in the development of state infrastructure programs, the formation of public-private partnership strategies, and the improvement of the institutional environment for attracting investments to Ukraine.