Abstract
The state of the infrastructure is a reflection of the socio-economic development and investment attractiveness of the city. However, the decision on attracting investments for the implementation of infrastructure projects should be made taking into account the indicators of the project’s financial stability and possible negative scenarios. The aim of the research is to assess the investment attractiveness of the infrastructure project in the city of Leninogorsk (Russia, the Republic of Tatarstan) and to model the risks of its implementation. The following methods were used in the calculations: the method of calculating the net present value of the project (NPV), the method of calculating the discounted payback period (PBP), the method of calculating the internal rate of return (IRR). A two-parameter sensitivity analysis was used for risk simulation of the investment project. The net present value of the project (NPV) and the internal rate of return (IRR) were taken as the result indices. It was concluded that long payback and low financial sustainability make infrastructure projects in towns and medium-sized cities unattractive for private investors. The simultaneous increase in the discount rate and the investment costs of the project has the greatest influence on the NPV indicator. The results can be used in the strategy for the development of infrastructure projects in towns and medium-sized cities.
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Medyanik, Y., Shagiakhmetova, E., Gimadieva, L., Vakhitova, D. (2021). Economic Aspects of Infrastructure Projects Implementation in Towns and Medium-Sized Cities. In: Vatin, N. (eds) Proceedings of STCCE 2021. STCCE 2021. Lecture Notes in Civil Engineering, vol 169. Springer, Cham. https://doi.org/10.1007/978-3-030-80103-8_13
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