Ilja Arefjevs, Jurijs Spiridonovs, Natalja Tocelovska


The aim of the article is to examine infrastructure classification and assess private financing alternativesfor major groups of physical infrastructure under ownership of state owned enterprises in Latvia.Tasks of the research include examining types infrastructure with a focus on physical infrastructure,explaining importance of physical infrastructure to economy of a country and society, studying physicalinfrastructure financing challenges and problems, conducting a research on a state owned enterprisesin Latvia, which own physical infrastructure, conducting expert interviews to reveal key challenges ofprivate financing alternatives for funding of infrastructure of state owned enterprises in Latvia as wellas drawing corresponding conclusion.Methods used are structured expert interviews, analytic hierarchy process, monographic method, documentanalysis, case study method, and literature review. The empirical research covers ten stateownedenterprises of Latvia, which own physical infrastructure. The major groups of infrastructurecovered by the research are transportation, communication and power. Following key private financingalternatives are considered- commercial bank loans, bond issues as well as public-private partnerships.Seven experts were interviewed to reveal key infrastructure financing challenges faced by stateowned enterprises. Out of seven experts, one expert represents the power industry, two experts operatein the area of communications and four are financing experts covering all infrastructure areas.At the final stage of the research, preferred alternatives for major groups of physical infrastructureunder ownership of state owned enterprises in Latvia derived from expert assessments are presentedand corresponding conclusions drawn.Only one company out of ten subject to research is financed not only by bank loans, but also issuedbonds to attract funding. None of infrastructure objects belonging to these companies is financed viapublic-private partnership.The outcome of the article is an expert interview based hierarchy of suitable financing alternatives forstudied types of infrastructure under ownership of state owned enterprises of Latvia.



infrastructure financing, state owned enterprises, corporate governance

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Print ISSN: 1822-8402
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