The Practice of Investment Project Selection for Budget Financing

Abstract

Author: Stanislav Y. Savin

There is a common opinion in Russian business practice that writing business plans is an easy task with the help of COMFAR or Project Expert softwears, and it is not a big deal to compare different business plans once project financial summaries are available. However, one crucial issue is missing in such approach. Business-plan is an intellectual product, reflecting private investor interests, skills and experience. It is also a perishable product as its financial summaries are based on current economic assumptions. Tomorrow there will be new assumptions and accordingly new business plan summary is required. As such, private business implementation of modern technologies, best business practices and environment protection are among the most important criteria in state budget financing process but not a formal benchmarking of investment plans.