Practices of forest exploitation in priority investment projects: Benefits and implications

Abstract

The paper discusses the topical issues of investment activities enhancement in the forest sector of the Russian economy by implementing the mechanism of priority investment projects in the field of forest exploitation - economic model of public-private partnership proposed by the forest owner (the State) for the private sector. The aim of the considered investment projects is the development of a timber-processing infrastructure, which is reliably provided with wood raw materials. It becomes possible to ensure certain preferences for businessmen that encourage them to invest money into the forest sector. Thus, the other objective is to develop recommendations for attracting investments into the forest sector of the Russian economy in the framework of priority investment projects. The paper analyzes a ten-year experience in the practice of applying priority investment projects in forest exploitation using an integrated approach to studying project management issues and method of comparison. The research identifies positive moments and a number of organizational and methodological shortcomings related to the development and implementation of investment projects in the forest sector of the Russian Federation. A number of areas contributing to the development of investment activities in forest exploitation is proposed. © Published under licence by IOP Publishing Ltd