PUBLIC-PRIVATE PARTNERSHIP: CHARACTERISTICS AND DIFFERENCES FROM PUBLIC PROCUREMENТ

2017 ◽  
Author(s):  
Larysa Lazebnyk ◽  
◽  
Yevhenii Nuriakhmetov ◽  
Keyword(s):  
Sewage Treatment ◽  
Public Private Partnership ◽  
The State ◽  
Economic Life ◽  
Transport Infrastructure ◽  
Practical Implementation ◽  
Value For Money ◽  
Private Prisons ◽  
Private Partnership ◽  
Telecommunications Infrastructure

Рublic-private interactions have become commonplace in the economic life of many countries. Governments, state-owned enterprises and organizations use various forms and mechanisms to attract private capital to fulfill the main responsibilities of the state - the provision of socially important public services related to the development and maintenance of transport infrastructure (roads, bridges, tunnels, parking lots), water supply, social housing, telecommunications infrastructure, sewage treatment plants, museums, schools, hospitals, and in some countries even private prisons. The state turns to such an instrument of contractual agreements with private partners as public- private partnership in order to bridge the gap between available resources and funds needed to finance projects in the above areas, diversify supply, ensure optimal value for money, allocate not only costs but and risks. Using the definition of public-private partnership, which is given by authoritative international organizations, contained in the Law of Ukraine "On Public- Private Partnership" and research, the article describes the key features of public-private partnership. These are the distribution of risks, the conflict of interests of partners, the problem of agency relations, longevity. The main attention is paid to identifying the specifics of PPP from the standpoint of differences from traditional procurement. This analysis distinguishes the requirements for these two types of contracts between public and private entities and identifies factors that may lead to wrong choices and thus discourages the desire to optimize value for money in the provision of socially necessary services. Awareness of the peculiarities of PPP will contribute to the success of its future implementation and practical implementation in Ukraine.

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.

scholarly journals AN EXAMINATION OF PUBLIC-PRIVATE PARTNERSHIP IN TOURISM DEVELOPMENT IN NIGERIA: THE “CALABAR CARNIVAL” EXPERIENCE.

2017 ◽  
Vol 2 (1) ◽  
pp. 13-25
Author(s):  
Ozili, P. C. ◽  
Aniagolu, C. O. ◽  
Maluze,. F. O
Keyword(s):  
State Government ◽  
Tourism Development ◽  
Public Private Partnership ◽  
The State ◽  
Transport Infrastructure ◽  
Private Partnership ◽  
Cross River ◽  
Cross River State ◽  
Adequate Funding ◽  
The Cross

The importance of tourism development in a nation’s economy and sustainable development cannot be overemphasized. The Cross River State Government in Nigeria took the bull by the horn by initiating the “Calabar Carnival” in 2004 with the intention of making the state one of the best tourist destinations in Africa. The Carnival gained popularity but insecurity, poor infrastructural facilities, poor funding amongst others have reduced greatly the progress made by the carnival. This paper therefore tried to X-ray how the success of the carnival could be improved through Public-Private Partnership (PPP). The study adopted the descriptive research method in which data was collected from document of the Cross River State Tourism Bureau (CRSTB), Cross River State Carnival Commission (CRCC) and other published and unpublished materials. The study found out that the carnival has not made serious progress because it is fully organized by CRSTB and CRCC. The study then recommended PPP as a way forward stating that PPP would ensure adequate funding for tourism development in the state, provide tourism support and transport infrastructure while at the same time ensuring security of tourist, maintenance of tourism projects and adequate training of tourism workers to mention only but a few.

scholarly journals Public-Private Partnership as a Financial Instrument for the Transport Infrastructure Modernizing

2018 ◽  
Vol 170 ◽  
pp. 05012 ◽  
Author(s):  
Ivan Makarov ◽  
Vladimir Plotnikov
Keyword(s):  
Public Private Partnership ◽  
The State ◽  
Transport Infrastructure ◽  
Private Capital ◽  
Infrastructure Development ◽  
Private Business ◽  
Effective Mechanism ◽  
Private Partnership ◽  
Modern Economy ◽  
Mechanism Of Interaction

In the modern economy, there are problems associated with investing in infrastructure development. Its facilities are public goods. Therefore, private business is not interested in their creation and development. And the state does not have sufficient resources to solve the problems of infrastructure development. Therefore, the mechanism of interaction between the state and business on the basis of public-private partnership (PPP) has spread in this sphere. The analysis shows that the forms of PPP depend on the country (region) and industry. Therefore, increasing the effectiveness of PPP, as the authors have shown, should be based on the specificity of projects. The article analyzes the experience and perspectives of PPP development in the Russian transport industry. The authors concluded that the interaction of power and private capital is the most effective mechanism in modern conditions for the creation and development of transport infrastructure in Russia. At the same time, the article focuses on the financial component of PPP in transport.

scholarly journals Legislative conflicts of development of the financial mechanism of public-private partnership in Ukraine

2020 ◽  
pp. 28-32
Author(s):  
Bohdana Shuliuk
Keyword(s):  
National Level ◽  
Public Private Partnership ◽  
The State ◽  
Entrepreneurial Activity ◽  
Practical Implementation ◽  
Social Infrastructure ◽  
Private Partnership ◽  
Economic Sphere ◽  
Legislative Support ◽  
Financial Mechanism

Purpose. The purpose of the article is to study the legislation governing the formation and operation of the financial mechanism of public-private partnership, as well as to substantiate measures to address its gaps. Methodology of research. The following methods are used in conducting the research: an analysis and comparison – in study the normative and legal acts in relation to adjusting of financial mechanism of public-private partnership. The logical assessment was used to substantiate proposals for improvement and the main aspects of the development of legislative support of this mechanism. The generalization was used in the process of formulating conclusions based on the results of the analysis. Findings. It is established that normative and legal base for the development of the financial mechanism of public-private partnership is at the stage of formation, accompanied by a number of problems and constraints that hinder the development of the mechanism. It is multilevel, confusing, complex and bureaucratic. Therefore, the need to develop a state strategy for the development of partnership between the state and business at the national level is substantiated; establishing compliance between the legislation of general and specialized action; development and adoption of legislation that would regulate the partnership between the state and business in various types of economic activities and areas of social infrastructure, etc. Originality. Recommendations have been made to improve the legislative support for the development of the financial mechanism of public-private partnership, which, in contrast to the existing ones, will make it possible to resolve contradictory provisions in the field of cooperation between the state and business. Practical value. The practical implementation of the proposed measures will create favourable legislative conditions for the development of this mechanism, which will allow to solve state problems in the economic sphere and social infrastructure, as well as to stimulate entrepreneurial activity. Key words: financial mechanism, public-private partnership, legislation of Ukraine, economic sphere, social infrastructure, priorities of budget financing.

scholarly journals Relational model of public-private partnership in railway transport

2020 ◽  
Vol 79 (5) ◽  
pp. 261-270
Author(s):  
N. F. Sirina ◽  
V. P. Pershin
Keyword(s):  
Public Private Partnership ◽  
The State ◽  
Transport Infrastructure ◽  
Automated System ◽  
Relational Model ◽  
Main Task ◽  
Railway Transport ◽  
Railway Network ◽  
Private Partnership ◽  
Software Complex

The main task facing the state is the solution of publicly significant issues to achieve public interests. Moreover, not every country has the necessary resources, especially in an unstable economic situation. In this case, increasing the efficiency of natural monopolies in the conjuncture of the transport market becomes the most relevant direction in government activities.The article is devoted to the issues of public-private partnership in railway transport. First of all, projects with private capital that are being implemented should eliminate the limiting sections of the Russian railway network and ensure the development of large industrial regions by creating an extensive transport network, the formation of which is impossible without the participation of the state.To increase the attractiveness of public-private partnership projects, the authors, taking into account the foundations of human capital management, have considered aspects of the additional effect for partners, which are defined by the concept of “relational effect”. Positive dynamics of socially oriented indicators, unaccounted in the agreement of the parties, reflect the presence of benefits from joint activities and positive relational effect, while negative change — about its absence.Based on the studies performed, a mechanism for controlling operating costs based on an integral assessment has been proposed, which makes it possible to analyze the actual direct costs of partners and compare deviations from the established standards. This mechanism is used in the state vertically integrated procedure for centralized training of authorities in public-private partnership. The general algorithm of the relational model of interaction between investment parties is formalized, illustrated by the example of the implementation of a project for the construction of a railway transport infrastructure.Mathematical support for the process of considering information on the project and making a decision on concluding an agreement on public-private partnership was carried out in the program “Automated system for consolidation, selection and control of the implementation of innovative projects of concession forms of management in railway transport”. The results obtained are integrated into the software complex for innovative development of facilities and are tuned for transformation, effective use of the potential of partners, investors, performers and industry enterprises.

scholarly journals Particularities of public-private partnership in the social field of the republic of Moldova

2019 ◽  
Vol 13 (1) ◽  
pp. 411-420
Author(s):  
Irina Călugăreanu
Keyword(s):  
Real Estate Market ◽  
Public Private Partnership ◽  
The State ◽  
Transport Infrastructure ◽  
Social Field ◽  
Private Partnership ◽  
State Institutions ◽  
Republic Of Moldova ◽  
The Social ◽  
The Republic

Abstract The evolution between the state institutions and entrepreneurship relations in developed and developing countries has proved that their constructive interaction is the most important factor for successful socio-economic development. The constantly growing gap between the needs of the population for public services, infrastructure, requirements for them, and budget constraints led to the development of partnership relations between the state and business structures. Most often, the interaction between business and state institutions is found in such areas as state property management, regional development, the real estate market, infrastructure support on technological development, transport infrastructure, utilities, medical and educational services. But to a greater degree public-private partnership, especially in the form of a concession, is applied in the field of transport and directly in road construction and we would like to emphasize that this practice is quite broad with rich experience. Interest in PPP mechanisms in other areas of activity is primarily due to the budget deficit. Without attracting the resources and potential of the institution of entrepreneurship, it is impossible to solve the task of developing a particular socially significant sphere in the context of a lack of budgetary resources. Therefore, taking into account the condition of the Republic of Moldova social sphere, more interesting is the issue of the extension of PPPs in the public sector. Therefore, the article is dedicated to features, tools and tendencies identification of public-private partnership in the social field within the Republic of Moldova.

ANALYSIS OF THE STATE AND PROBLEMS OF PUBLIC-PRIVATE PARTNERSHIP DEVELOPMENT IN THE REGION

2021 ◽  
Vol 3 (9) ◽  
pp. 87-94
Author(s):  
S. V. NEZHDAI ◽  
◽  
A. Yu. LUKYANOVA ◽  
I. S. GRUZINOVA ◽  
A. A. PROSTYAKOV ◽  
...  
Keyword(s):  
Economic Development ◽  
Public Private Partnership ◽  
The State ◽  
Private Business ◽  
Public Authorities ◽  
Private Partnership ◽  
Federal Level ◽  
Partnership Development ◽  
The Social ◽  
Social And Economic Development

The article shows that, in general, cooperation between public authorities and private business is one of the most important factors that generally affect the social and economic development of territories. The powers in the field of organizational and regulatory regulation of public-private partnership issues at the federal level are considered.

scholarly journals Alternative To Development of Tourist Attraction with Public Private Partnership Scheme in Magelang Regency

2021 ◽  
Vol 2 (4) ◽  
pp. 263-273
Author(s):  
Siti Arifah ◽  
Agung Nur Probohudono ◽  
Djuminah ◽  
Evi Gantyowati
Keyword(s):  
Local Governments ◽  
Public Private Partnership ◽  
Tourist Attraction ◽  
Value For Money ◽  
Structured Interviews ◽  
Private Partnership ◽  
The Public ◽  
Service Contracts ◽  
Natural Beauty ◽  
Management Contracts

This study aims to see how the condition of the object/Tourist Attraction (TA) in Magelang Regency in Indonesia and its alternative development. This research uses a descriptive qualitative approach with case studies of 31 tourism objects which will then be investigated regarding their conditions and possible future developments. Research data were obtained by direct observation of the location of tourist objects and through semi-structured interviews. The results of this study illustrate that tourism objects in Magelang Regency are currently quite developed. However, this has not been able to attract general tourists to linger in the regency and provided an optimal contribution to regional income. This is because tourism objects in the regency other than Borobudur Temple have not been maximized for their existence and utilization. The Public-Private Partnership (PPP) scheme model can be an alternative to be applied in developing tourism objects accompanied by an appropriate Value for Money (VfM) analysis. Tourism objects in the form of cultural heritage can be developed through concession contracts, natural beauty can be developed through management contracts, and artificial objects can be developed through service contracts while taking into account the development needs of each tourism object. Local governments need to establish cooperation with the private sector with a Public-Private Partnership scheme accompanied by the preparation of strict regulations so that the implementation of cooperation in the context of developing tourism objects in the Magelang Regency can bring optimal benefits to all parties.

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