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Features of Financing Smart City Development Projects
Bohun M. M.

Bohun, Maksym M. (2024) “Features of Financing Smart City Development Projects.” Business Inform 12:103–111.
https://doi.org/10.32983/2222-4459-2024-12-103-111

Section: Information Technologies in the Economy

Article is written in Ukrainian
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UDC 332.145

Abstract:
The spread of smart city practices is based on the use of technology to improve the quality of life of citizens, management efficiency and the development of a sustainable urban environment. The implementation of projects to introduce smart technologies into the life of cities requires significant investments, which often exceed the capabilities of city budgets. The aim of the article is to systematize modern approaches to financing smart city development projects. The article systematizes the practices of global smart cities and verifies the use of more diversified and complex mechanisms for financing development projects, which include: direct investments (public, private, corporate, mixed, etc.); crowdfunding by raising funds from the widest possible co-financing network; grants and subsidies for specific projects; municipal bonds and loans; innovative forms of attracting financial resources (fintech, blockchain, etc.). The problems and challenges faced by project financing in smart cities are summarized, including: the constant increase in the cost of modern technologies, their implementation and maintenance, the development of technological platforms and the need to find new infrastructure solutions; insufficiency of State funding (both national and local); lack of standardization and integration of technologies; privacy or security issues with data storage and processing problems with the implementation of environmental projects and the development of a circular economy. All these issues require further research and the development of practical solutions. For every city that is starting the path to smart and requires large investments, it is important to present systematized information about the world experience in financing large-scale and high-cost development projects, successful practice of overcoming challenges and threats.

Keywords: crowdfunding, smart city, smart technologies, targeted financing, hybrid financing.

Fig.: 3. Tabl.: 1. Bibl.: 20.

Bohun Maksym M. – Postgraduate Student, Department of International Management, Kyiv National Economic University named after Vadym Hetman (54/1 Beresteiskyi Ave., Kyiv, 03057, Ukraine)
Email: [email protected]

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