Public-private partnership in Ukraine
PUBLIC-PRIVATE PARTNERSHIP IN UKRAINE
Public-private partnership in Ukraine is declared as a system of relations between public and private partners that combine their recourses allocating the possible risks, responsibilities, and rewards (recoveries). The cooperation is realized on a long-term basis to create (restore) and/or modernize (reconstruct) available objects that need to attract investments and to use these objects after the restoration.
REASON FOR IMPLEMENTING
Projects of public-private partnerships were implemented by both – economically developed countries and developing countries facing the challenge of rebuilding the national economy in adverse conditions. Their experience proves that such projects allow attracting private capital in infrastructure in the short term, providing rapid economic growth even in case the amount of the state investment is not significant.
In 2014, 18.7 billion euro (in 2013 – 16.3 bn.) were invested in PPP projects in Europe
ECONOMY MODERNIZATION POLICIES
Public-private partnership (PPP) is defined as key mechanisms for modernization of Ukraine’s economic policy, solving major social and economic problems. The high efficiency of PPPs as a form of cooperation between the state and business was proven in many countries. There are certain conditions that can contribute to an effective implementation of PPP mechanism in Ukraine.
The implementation of large-scale modernization projects in various sectors requires considerable investments that apparently could be provided by the business. At the same time, during the current phase of post-crisis development, we can see the growing interest of business in government support that will allow to reduce the risks of the private investment and improve the reliability of investment projects for credit institutions.
ACTIVIZATION OF INVESTMENT ACTIVITY
A successful development of PPP as a mechanism to stimulate investment and attraction of private investment in the spheres that rare strategically important for the state is possible only in case of establishment of a state-private investor balance of interests.
The legal form of the PPP should ensure investor attractiveness, a safety of investing in state ownership and realize the main purpose of the project that is a development of the strategically important sector. In order to achieve the result, the state should see a private investor as an equal partner. Calling on him to perform the obligations under the agreement, the state should also guarantee the realization of its own accountabilities.