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RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS of Ukraine (KHARKIV, UKRAINE)

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Liburkina L. M.

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Financing Urban Public Transport: Modern Models, Sources, and Development Mechanisms
Palant O. Y., Hrybeniuk S. М., Dzhabrailov A. М.

Palant, Oleksii Yu., Hrybeniuk, Serhii М., and Dzhabrailov, Arsen М. (2026) “Financing Urban Public Transport: Modern Models, Sources, and Development Mechanisms.” Business Inform 5:331–339.
https://doi.org/10.32983/2222-4459-2026-5-331-339

Section: Economics of Transport and Communications

Article is written in Ukrainian
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UDC 330.342.3

Abstract:
The relevance of the problem of financing urban public transport is determined by the growing need for modernization of transport infrastructure, the high capital intensity of transport projects, limited budgetary resources, and the necessity to ensure sustainable urban development. Under conditions of urbanization, ecological transformation of transport systems, and postwar recovery of Ukrainian cities, the search for efficient financing models capable of ensuring the financial sustainability and investment attractiveness of public transport becomes especially important. The aim of the article is to study modern models of financing urban public transport, identify the peculiarities of the formation of financial resources for transport infrastructure, and substantiate the feasibility of implementing a multichannel financing model and the conception of Transit-Oriented Development. The research methodology is based on methods of theoretical generalization, system and comparative analysis, a structural-functional approach, and elements of economic-mathematical modeling to formalize the relationship between financing sources and the level of financial sustainability of the transport system. The information base of the study includes scientific works of domestic and foreign researchers, analytical materials of international financial organizations, regulatory legal acts, and modern studies in the field of transport economics and urban studies. The article examines the State-based, market, and mixed models of financing urban public transport, as well as the peculiarities of using budgetary resources, credit mechanisms, private investments, investment funds, municipal bonds, and public-private partnership instruments. The results of the study show that the traditional single-channel financing model, based mainly on budget subsidies, is gradually losing its effectiveness due to the high level of financial dependence of transport enterprises and limited local budget resources. It is substantiated that increasing the financial sustainability of urban public transport is possible through diversification of financing sources and integration of transport infrastructure with mechanisms of commercial urban development. It is proved that the Transit-Oriented Development conception allows transport infrastructure to be transformed into an instrument of urban economic growth through monetization of transport space, capitalization of real estate value, and creation of additional financial flows. A multichannel financing model is proposed, which combines budgetary funds, international financing, private investments, debt instruments, and commercial revenues as a basis for ensuring long-term development and financial stability of urban public transport systems.

Keywords: urban public transport; multichannel financing; public-private partnership; Transit-Oriented Development; investments; transport economics; financial sustainability.

Formulae: 3. Bibl.: 25.

Palant Oleksii Yu. – Doctor of Sciences (Economics), Associate Professor, Professor, Department of Entrepreneurship and Business Administration, O. M. Beketov National University of Urban Economy in Kharkiv (17 Chornohlazivska Str., Kharkіv, 61002, Ukraine)
Email: [email protected]
Hrybeniuk Serhii М. – PhD, Leading Engineer, LLC RS Engineering (57 Poltavskyi Shliakh Str., Kharkiv, 61052, Ukraine)
Email: [email protected]
Dzhabrailov Arsen М. –

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