DEVELOPING THE ENERGY SECTOR OF BLACK SEA COUNTRIES: THE APPLICATION OF MODERN FINANCIAL MECHANISMS

摘要

One of the main objectives of the energy policy of the Black Sea countries has been the provision of required energy on a timely, reliable, cost-effective, and high-quality basis in order to support sustainable development and social progress. The policy also makes notable efforts to ensure adequate funding and encouragement of investments from the public and private sector as well as from foreign capital. However, the efficient realization of energy projects depends greatly 011 adequate and timely identification of possible sources and tools of funding. Lack of public funds and the difficulties in obtaining financing are strong deterrents to energy investments in many countries around the world, and more specifically in economies under transition. Alternative financial mechanisms have been developed to overcome these barriers. This article appraises four financial mechanisms―third-party financing, build-operate-transfer, venture capital, and revolving loan funds―according to the priorities of the energy sector of the Black Sea countries.