scholarly journals Affordable social infrastructure vs public-private partnership

2021 ◽  
Vol 17 (3) ◽  
pp. 339-348
Author(s):  
Vitaly Maximov
Keyword(s):  
Social Services ◽  
Private Investment ◽  
Public Private Partnership ◽  
The State ◽  
Infrastructure Development ◽  
Social Infrastructure ◽  
Private Partnership ◽  
Economic Mechanism ◽  
Wide Range ◽  
Private Investors

The article is devoted to the problems of sustainable development of social infrastructure and social services, which are beyond the effective demand of large cities, cannot develop according to market laws, and provide the necessary level of infrastructure fullness. Despite 45.9% of private companies in the social sectors, the vast majority of real estate objects continue to be owned by the state, forming the need to find economic mechanisms for the development of state social infrastructure, outside of limited budget opportunities. The possibility of attracting private investment in new construction and reconstruction without alienating the ownership right to it makes public-private partnership (PPP) and the economic mechanism based on it have no alternative. However, its practical application suffers from asociality, leading to the appearance of state-owned facilities where private investors conduct exclusively commercial activities. The apparent budget savings lead the state, judicial and supervisory authorities in such territories to a strategic failure, reducing the number of state facilities operating at state prices, ignoring the requests of the population for affordable social infrastructure, increasing social tension in society. This work is aimed at studying the irrational behavior of private investors, the stability of which is provided by the PPP mechanism, where the state determines the necessary level of the sociality of infrastructure objects that best corresponds to the existing stratification of residents of a certain territory through competitive procedures and essential conditions of the future project. It is necessary to continue research on improving federal legislation, whose social neutrality leads to conflicting expectations of the parties from PPP, adding sensitivity to a wide range of risks, repelling private investment and investors, limiting infrastructure development only to budget opportunities. The development of an economic mechanism that ensures finding a balance of accessibility and market rationality of social facilities is not an easy task, which has many solutions taking into account the characteristics of a particular territory and its population

scholarly journals Public-private partnerships in social services: foreign practices and prospects for implementation in Ukraine

2017 ◽  
pp. 21-37
Author(s):  
Alina Zhukovska
Keyword(s):  
Social Services ◽  
Public Private Partnership ◽  
Public Private Partnerships ◽  
Healthcare Sector ◽  
Medical Services ◽  
Infrastructure Development ◽  
Social Infrastructure ◽  
Private Partnership ◽  
Priority Areas ◽  
The Uk

The article outlines the issues of social infrastructure development in Ukraine. The need of addressing these issues through implementing public-private partnership projects is justified. Some priority areas for introducing public-private partnership in Ukraine are identified. The best foreign practices of attracting private sector to solving problems of social infrastructure development are considered. It is revealed that priority areas where public-private partnerships operate are dependent on the level of socio-economic development of the country. Some practices of public-private partnership projects in education in the UK, Australia, Germany, and Egypt are analyzed in detail and their common characteristics are systematized. Based on the analysis of best foreign practices applied in implementing public-private partnership projects in healthcare, the following key measures are formulated: direct provision of medical services, management of medical assets, development and production of pharmaceuticals, improvement of access to medical services and products. The performance of public-private partnership projects in the healthcare sector in the UK, France, Australia and Sweden is analyzed in detail. The paper describes both more and less successful examples of publicprivate partnership in this sector. The article defines the following reasons for low-level implementation of public-private partnership projects in healthcare: schedule delays in construction, operation-cost overruns, poor hospital and ward layout, use of low-cost medical equipment which requires regular renewal. The research also considers the best foreign practices of introducing public-private partnership projects in the field of culture. Some characteristic features of public-private partnership projects in social services in foreign countries are identified. The national practices of introducing public-private partnership projects are highlighted and priority areas of their operation are singled out. It is found out that the implementation of public-private partnership projects in social services is not popular among domestic investors. Some individual projects of public-private partnership in social services are considered. A particular attention is paid to both more and less successful ones. The main problems of the implementation of public-private partnership projects in the national education, healthcare, culture are outlined and ways for their solution are proposed.

Budget Subsidies + “Private Concession Initiative” = Stopper for Social Infrastructure Development

2021 ◽  
Vol 152 (6) ◽  
pp. 30-39
Author(s):  
Vitaly V. Maximov ◽  
◽  
Keyword(s):  
Law Enforcement ◽  
Social Behavior ◽  
Private Investment ◽  
State Ownership ◽  
Public Private Partnership ◽  
Infrastructure Development ◽  
Social Infrastructure ◽  
Private Partnership ◽  
Commercial Activities ◽  
Budgetary Participation

The overwhelming majority of social infrastructure facilities remain in state ownership, requiring special formats for attracting private investment without possibility of disposition and loss of their destination. Mechanism of public-private partnership doesn't leave any other option for such projects, and the "private concession initiative", which has become widespread in recent years, is best suited for projects focused on commercial activities, although this limits its application to social facilities. Non-competitive basis of this format relies on the market offer of the investor, whose rationality does not imply social behavior and whose activity is obviously not intended for budgetary participation. Recently, there has been an increase in cases of government authorities taking commitments on budgetary co-financing of agreements concluded as a result of such initiatives, which is often fraught with systemic violations of budgetary legislation. Connivance of the control-supervisory and judicial authorities results in formation of skewed law enforcement practice, in 36.2% of projects investors receive additional rental income from the budget, objectively not justified. This not only results in budget overpayments, but also devalues competitive formats that were previously quite successful — at present only 1/5 of social projects are concluded through a competitive process.

Features of Public-private Partnership as an Economic and Legal Tool for Sustainable Development

2021 ◽  
Vol 17 ◽  
pp. 533-541
Author(s):  
Iaroslav Petrunenko ◽  
Nataliia Vasylieva ◽  
Sergii Prylipko ◽  
Nataliia Kryzyna ◽  
Svitlana Lavrynenko ◽  
...  
Keyword(s):  
Economic Transition ◽  
The Philippines ◽  
Public Private Partnership ◽  
The State ◽  
Social Model ◽  
Public Private Partnerships ◽  
Infrastructure Development ◽  
Private Partnership ◽  
Social Partnership ◽  
Wide Range

The economic transition from a market to a social model requires a review of the role of the state and representatives of business structures in the economic system. Various forms of their interaction are becoming increasingly important, the main of which are public-private partnerships aimed at financing, formation, and implementing socially important projects. The purpose of the study is to analyze and evaluate the parameters of interaction between the state and the private sector in terms of improving the socio-economic partnership based on the provisions of the concept of public-private partnership (PPP). To achieve the goal were used such methods: analysis and synthesis; formalization and grouping; systematization and logical abstraction. The practice of the Public-Private Partnership Center of the Republic of the Philippines shows that the rational use of social partnership financial instruments will allow the state to reduce the budget burden, ensure infrastructure development, increase employment, develop private enterprises and improve the quality of goods and services. It is noted that the level of public-private partnership use in the world differs significantly, and therefore requires further intensification of efforts to stimulate its use, including due to the wide range of significant benefits of its use for the economy and the population in particular. Public-private partnerships are becoming increasingly popular as they provide many important benefits. In particular, the opportunity to obtain additional financial resources, including through additional investments, quality projects involving professional companies, open access to innovative technologies, and priority opportunities for the state to direct funds to specific areas. Thus, the direction of further research may be to determine the details of the functioning of projects in the framework of public-private partnerships. It is also important to conduct a pre-investment analysis, check the effectiveness of financing, prepare appropriate recommendations for each project stage.

scholarly journals АНАЛІЗ ТЕНДЕНЦІЙ РОЗВИТКУ СИСТЕМИ ДЕРЖАВНО-ПРИВАТНОГО ПАРТНЕРСТВА НА РИНКУ ПОСЛУГ АВТОМОБІЛЬНОГО ТРАНСПОРТУ

2021 ◽  
Vol 151 (5) ◽  
pp. 94-103
Author(s):  
Даниїл В. Лапоног
Keyword(s):  
Private Investment ◽  
Road Transport ◽  
Public Private Partnership ◽  
Infrastructure Development ◽  
Private Partnership ◽  
The Public ◽  
Partnership Development ◽  
Transport Services ◽  
The Government

The article seeks to provide insights into contemporary research in public-private partnership development in the road transport market. The study reviews a range of world public-private partnership best practices which demonstrate that effective interaction between government and business at different levels (national, subnational and regional) allows to attract and allocate investment resources more effectively, thus contributing to creating new jobs, promoting better infrastructure development and enhancing the overall quality of life in the country. It is argued that among the key factors boosting the public-private partnership market development the most significant is the level of institutionalization. It is also asserted that this factor, in combination with the relevant political environment and the capital market specifics, facilitates building successful partnerships. Moreover, government initiatives together with legal and regulatory interaction frameworks shape solid foundation to encourage further public-private partnership development by gaining positive effects from successful implementation of such partnerships, designing roadmaps and unified standard procedures and processes aimed at simplifying the relationships between the private sector and the government. Apart from the above, it is highlighted that the institutional factor aligned with the government strategic goals affects the formation and legitimation of public-private partnership markets. The study also provides argument that through the models of public-private partnerships the public sector can benefit, in the first place by utilizing resources of private companies, thus fostering further infrastructure development and raising the effectiveness and efficiency of road transport services market. The findings reveal that the purpose of public-private partnership programs institutionalization in the sector of road transport services is to enhance government motivation to attract private investment and offer new road network services based on public-private partnership contracts which will contribute to ensure the quality of road services.

scholarly journals Methodical principles of analysis of the concept of “organizational and economic mechanism of public-private partnership”

2021 ◽  
pp. 137
Author(s):  
Angela Kuznyetsova ◽  
Vladislav Maslov
Keyword(s):  
Corporate Strategy ◽  
Public Private Partnership ◽  
The State ◽  
Private Partnership ◽  
Scientific Methods ◽  
Economic Mechanism ◽  
The Board Of Directors ◽  
Theoretical Generalization ◽  
Methodological Principles ◽  
Definition Of

Introduction. In recent years in Ukraine, the task of ensuring multi-faceted cooperation between the state and private business has been relevant. The formation of effective principles of realization of public-private partnership determines the need for a detailed study of the essence, characteristics and principles of its organizational and economic mechanism.Goal. The purpose of the article is to reflect and analyze the methodological principles of determining the essence and bases of formation of the organizational and economic mechanism of public-private partnership.Methods. In order to achieve the defined goal, a complex of general scientific methods applied: theoretical generalization - to determine the methodological principles and essence of the organizational and economic mechanism of public-private partnership, a method of scientific abstraction - in the distinguishing components and results of the organizational and efficient mechanism of cooperation between the state and business, abstract-logical Theoretical generalization and formulation of conclusions.Results. During the analysis of the methodological principles of the concept of «organizational and economic mechanism of public-private partnership», the basis of research of the methodology of development of a system of public-private partnerships is determined on the basis of the concept of the organizational and economic mechanism for implementing public-private partnership. The tasks and processes that are most accurate characterize the components of organizational and economic mechanisms and include the formation of corporate strategy, dividend policy, management of management, improvement of the payment system, participation in the Board of Directors, hostile acceptance, receipt of powers of power and bankruptcy. The main tasks of the economic mechanism of which include: ensuring the profitability of the system of establishing a mutually beneficial cooperation of the system elements, which resulted in a single center to provide a balance of horizontal integration and vertical management purposes, as well as optimize internal- system transaction and organizational costs and mutually beneficial cooperation of the elements of the system, which involves the integration of their activities, which increases their potential separately and the system as a whole. It is noted that the result of the functioning of the economic mechanism is to create conditions for highly efficient activity due to effective resource management and achieve the effect of synergy from optimal use both in individual elements and in the scope of the entire system. Discussion. A promising direction of the study arises the need to improve methodological approaches to the definition of the essence and meaningful characteristics of public-private partnership as a new form of intensification of business development in Ukraine.

scholarly journals Delivering Countywide Cost-Effective and Better Education Services: The Models of Public Private Partnership (PPP)

2019 ◽  
Author(s):  
Md. Mahmudul Alam ◽  
Abu Rashed
Keyword(s):  
Social Services ◽  
Capital Investment ◽  
Cost Effective ◽  
Public Private Partnership ◽  
Private Partnership ◽  
Education Services ◽  
The Government ◽  
Increasing Demand ◽  
Private Investors ◽  
Operation Phase

Like other social services, education is one of the essential services that government is obliged to arrange for its country people, but to meet such increasing demand of educational infrastructures, government alone faces hues difficulties in capital investment especially in the developing countries. So, for developing the education infrastructure and providing quality education programmes, Public Private Partnership (PPP) has been proven an advanced tool for government in many of the countries. However, private investors may not have much interest for a typical PPP deal in education sector, because government provides the education services for free at the primary and secondary level. Therefore to make the PPP deal attractive to private investors, this paper suggests two approaches of PPP funding under the Built Operate and Transfer (BOT) models. Both the Viability Gap Funding (VGF) and Annuity Payment provide the investors the required subsidy from the government through payment in the construction or operation phase to make the project viable. This allows private investors to make revenue at expected level and government to save of hues up-front investments. Moreover, among different types of PPP models, the suggested types – BOT - also ensures the quality of education programmes.

Kajian Potensi Dan Peluang Pembangunan Infrastruktur Di Sektor Sosial Dengan Skema KBPU

2016 ◽  
Vol 1 (2) ◽  
pp. 105-120
Author(s):  
Towaf Totok Irawan
Keyword(s):  
Fiscal Policy ◽  
Public Private Partnership ◽  
Infrastructure Investment ◽  
Social Sector ◽  
Infrastructure Development ◽  
Social Infrastructure ◽  
Investment Planning ◽  
Private Partnership ◽  
Cooperation Mechanism ◽  
The Social

This study aims to formulate recommendations and opportunities for potential infrastructure development in the social sector by using KPBU scheme. The direct beneficiaries of this activity are the Deputy of Investment Planning as a unit that is directly responsible for formulating the proposed establishment of the Act related KPBU in the field of infrastructure investment. The output of this activity is also expected to be useful for investors in infrastructure and related stakeholders. Model cooperation Public Private Partnership in social infrastructure should take into account the uniqueness of each sector, particularly the constraints, risks and macro conditions, including fiscal policy and commitment to the objective of each sector. So that needs to be made cooperation mechanism Public Private Partnership in the field of social infrastructure by making adjustments to the conditions and limitations in the field of social infrastructure. Results and recommendations are discussed further in the paper. Keywords: Multi Criteria Analysis, infrastructure development

scholarly journals IMPROVEMENT OF THE PUBLIC-PRIVATE PARTNERSHIP SYSTEM IN THE ROAD TRANSPORT SERVICES MARKET

Management ◽  
2020 ◽  
Vol 31 (1) ◽  
pp. 25-37
Author(s):  
Danyil V. Laponoh
Keyword(s):  
Private Sector ◽  
Private Investment ◽  
Road Transport ◽  
Public Private Partnership ◽  
The State ◽  
Transport Infrastructure ◽  
Private Partnership ◽  
The Road ◽  
Transport Services ◽  
Effective Form

Introduction. The active use of the institution of public-private partnership (PPP) allows us to distinguish PPP from the totality of financial and economic relations between the state and the private sector based on the principles of equality and freedom of PPP participants, stability of the agreement and its flexibility, responsibility of the parties, competitiveness, non-interference, incentive and guarantees, retribution.The research hypothesis. The algorithm for selecting and assessing the effectiveness of projects in the road transport market to select the most effective form of financing with the participation of the state and the private sector will create conditions for attracting private investment in the development of transport infrastructure on the basis of public-private partnership.The purpose of this article is to improve the system of public-private partnership in the market of road transport services.The methodology of the study: expert, statistical, comparative, factor and scenario analysis; empirical data analysis using grouping, generalization methods.Results. An algorithm for selection and evaluation of the efficiency of projects in the sphere of the road service market to select the most effective form of financing with the participation of the state and the private sector has been proposed and tested, in particular: four alternative options for project financing to select the optimal one (state order, life cycle contract (LCС) without extra-budgetary financing, LCС with extra-budgetary financing, concession agreement); clarification of the methodology for evaluation of commercial, socio-economic and budgetary indicators of the road service market.Conclusions. Theoretical provisions developing the methodological basis of public-private partnership were formulated, including: the concept of public-private partnership was defined and its main principles were highlighted; classification of PPP forms and models was proposed taking into account the existing world and national practice; methodological tools for evaluation of PPP projects efficiency were improved.

Public (municipal) private partnership as an effective tool for developing the social infrastructure of territories: some questions of theory and practice

2020 ◽  
pp. 6-17
Author(s):  
Vladimir Novikov ◽  
Elena Semenova ◽  
Aleksey Kornienko ◽  
Sergey Gorokhov
Keyword(s):  
Regional Policy ◽  
Far East ◽  
The State ◽  
Theory And Practice ◽  
Social Infrastructure ◽  
Private Partnership ◽  
Economic Mechanism ◽  
The North ◽  
The Social ◽  
Rural Municipalities

In this article, the authors attempt to study the role and place of public (municipal) private partnership in the modern organizational and economic mechanism for the development of social infrastructure in Russian territorial entities (primarily, rural municipalities). The article uses the results of systematization of the survey of the heads of the Russian Federation's constituent entities conducted in 2020 with the support of the State Duma Committee on regional policy and problems of the North and Far East.

The perspectives of public-private partnership implementation as the instrument of infrastructure development in Ukraine

2019 ◽  
pp. 9-13
Author(s):  
Halyna Kravets
Keyword(s):  
Economic Growth ◽  
Development Strategy ◽  
Global Economy ◽  
Wide Spectrum ◽  
Private Investment ◽  
Emerging Economy ◽  
Public Private Partnership ◽  
Infrastructure Development ◽  
The European Union ◽  
Private Partnership

Infrastructure development stands out among the prime goals of an economy’s social and economic trajectory. Being a major driving force of wellbeing, economic growth strongly depends on infrastructure. An increase in capital investments in infrastructure has a comprehensive positive effect on an economy. Public-private partnership (PPP) is of particular importance for an efficient economic development strategy, especially for that of an emerging economy. Providing for sustainable economic growth is a struggle for emerging economies due to a wide spectrum of negative features they possess such as poor governance, corruption and widespread poverty. Involvement of private investment in terms of PPP leads to a decrease in government expenditures. Creating a favorable environment for PPP precedes a rapid increase in the number of private companies willing to compete for those contracts. Hectic competition expedites the establishment of the market economy, which is a reasonable conclusion to an emerging economy. Competing for a tender coerces private parties to generate as innovative approaches as possible in order to win. Maintaining a constantly increasing share of innovative activity in constructing and operating infrastructure is a viable opportunity to make a highly urbanized area gain a momentum towards more sustainable environment. Being a means of promoting green and smart technologies, PPP enables expediting integration into the global economy. Encouraging PPP facilitates globalization. Widespread utilization of PPP contracts in governmental procurement transfers risks related to construction and maintenance of infrastructure to private parties. Sustaining a creditworthy institutional and regulatory environment mitigates high sensitivity of PPP to crisis and derivative events. Ukraine is highly likely to significantly benefit from PPP. Considering Ukraine’s strong intention to integrate into the European Union, PPP may help to boost infrastructure development. It is recommended for Ukraine to follow the principle of reciprocate motivation in order to succeed in establishing an efficient mechanism of PPP development.

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