Projects of public-private partnership: key issues of practical implementation

Abstract

Introduction. The article is dedicated to public-private partnership (PPP), which is formed by the consolidation of efforts of the government, local authorities and businesses. The world practices of public-private partnerships, the most common types of such partnerships around the world are investigated in the article. These projects involve cooperation of central or local authorities and the private sector, based on a long term agreement for the supply of services that are traditionally provided by government / public utilities.

Purpose. The study aims to clarify the scope of the agreements on public-private-partnership and the factors which negatively affect the success of the defined by these agreements PPP projects in Ukraine.

The method (methodology). The study uses such general scientific methods as generalization, synthesis, analysis, comparison, abstraction and induction.

Results. The factors that adversely affect the success of PPP projects in Ukraine are grounded. The most significant of them are as the following: the lack of trust and cooperation between partners; complex and controversial legislation on PPP; lack of available financial resources; lack of professionalism of public training partner for PPP projects. The attention is also paid to significant problems in obtaining funding for public-private partnerships. The main approaches to evaluate the success of projects are analyzed. They are the cost, comparative, profit based ones. It is proved that the functioning of public-private partnership needs a strong public sector that is able to adapt to new roles and develop new competencies. In particular, PPP systems require specialists who are experts not only in creating partnerships and network management partnerships, but also have the skills of negotiation, contract management and risk analysis. It is found out that the main problem is the development of procedures and stimulation of processes that provide the efficiency of public-private partnerships and the launch of new institutions. The basic regulations governing public-private partnership in Ukraine are systematized. The proposals that will increase the number and effectiveness of the implementation of public-private projects are presented.