Interests and benefits of the state in public private partnership projects

Abstract

The paper addresses major premises, interests and benefits for the state in implementation of public private partnership (PPP) projects. PPP implies consolidation of resources of the state and private sectors for meeting public interests on a mutually beneficial basis. The author indicates that the subject of public private agreements is mostly the development (construction, service etc.) of facilities of capital intensive or low-income branches of economy. The benefits of the state in such projects are connected with the increase of the effectiveness, reduction of project implementation time, efficient introduction of innovations and better delivery of public services through development of a competitive environment. It is emphasized that the basic motive for establishing partnership between the state and the private sector has to be the use of innovative techniques and instruments for project implementation rather than an opportunity to finance a project to the intent that tax liabilities are avoided.