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.

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 Do Public-Private Partnership Investment in Energy and Technological Transfers Improve Environmental Quality To Achieve Sustainable Environment Agenda: Evidence From Pakistan

2021 ◽  
Author(s):  
Hummera SALEEM ◽  
Muhammad Bilal Khan
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Renewable Energy Sources ◽  
Private Investment ◽  
Public Private Partnership ◽  
Energy Sources ◽  
Ekc Hypothesis ◽  
Energy Policies ◽  
Private Partnership ◽  
Study Results

Abstract This paper tries to find the relationship among economic growth (GDP), import (IMP), export (EXP), public-private partnership investment (PPPG), and technological changes (TEC) on carbon-based CO2 emissions under the Environment Kuznets curve (EKC) premises during the period of 1980-2019 for Pakistan. This study employed various unit root tests that have been designed, such as Augmented Dickey and Fuller (ADF), ARDL co-integration tests, FMOLS, and DOLS estimation techniques. The results indicate that all the variables are co-integrated and have a short-run association among them. The results of DOLS and FOMLS indicate that CO2emissions significantly increase due to increases in economic growth. This study also verified the EKC hypothesis and the findings of the study support the EKC hypothesis for Pakistan. CO2 emissions are significantly decreased by increases in the share of technological innovation, and consumption-based carbon emissions are increased by the share of the trade and public-private investment in energy. The study results suggested that a reduction in the use of non-renewable energy through public-private investment and the use of renewable energy sources is related to energy efficiency policies. The consumption of non-renewable energy sources is high in Pakistan, as compared to renewable energy sources. Appropriate policy tools have been recommended to researchers and policymakers to minimize the harmful effect of global climate change and warming. Thus, environment quality can be enhanced through effective energy policies, sensible saving energy policies, optimized structural changes in the energy sector through effective government policies.

scholarly journals The Linkage between Public, Private Investment and Economic Growth—Evidence for the Developing ASEAN and Asian Countries

2017 ◽  
Vol 3 (4) ◽  
pp. 580 ◽  
Author(s):  
Nguyen Thi Canh, PhD. Prof. ◽  
Nguyen Anh Phong, PhD.
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Positive Impact ◽  
Public Investment ◽  
Private Investment ◽  
Public Private Partnership ◽  
Long Term Effects ◽  
Private Partnership ◽  
The Impact

<p><em>This study used a quantitative method to assess the impact of public investment on private investment and economic growth based on data from 18 developing countries over a 21-year period (1995-2015) by applying PVAR model combined with GMM. The findings show that all public investment and public-private partnership investments affect private investment as well as affect economic growth but the effects vary cyclically, by time period, and by group of countries.</em></p><p><em>For the ASEAN developing countries, public investment crowds out private investment in short term and crowds in private investment in the medium and long term, but it crowds out public-private partnership investment. For the developing countries in Asia, public investment has a positive impact on economic growth with the inverted U-shaped pattern which stimulates growth in the short and medium term, but in the long-term effects of stimulation growth tend to decrease.</em></p>

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

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.

scholarly journals PUBLIC-PRIVATE PARTNERSHIP PROJECTS IN THE DEVELOPMENT OF TRANSPORT INFRASTRUCTURE OF EU COUNTRIES

2021 ◽  
Vol 49 (2) ◽  
pp. 222-230
Author(s):  
Yurchenko A ◽  
Keyword(s):  
European Union ◽  
Great Britain ◽  
Public Private Partnership ◽  
Transport Infrastructure ◽  
Successful Implementation ◽  
Development Projects ◽  
Infrastructure Development ◽  
The European Union ◽  
Private Partnership ◽  
Eu Countries

The object of research - the development of transport infrastructure of EU countries, trends, prerequisites for successful implementation. The purpose of the work is to study the experience of implementing transport infrastructure development projects on the basis of public-private partnership in the countries of the European Union. The results of the study will be used to form an information base on transport infrastructure development projects that have been implemented on the basis of public-private partnership. Relevant information will be used to compare the expected performance of domestic projects with similar projects in the European Union The research method is monographic and statistical. The article is devoted to the study of trends in the application of the mechanism of public-private partnership in the development of transport infrastructure of the European Union. It was found that since 2013, the volume of investment and the number of projects implemented on the basis of PPP, tend to decrease. Thus, compared to 2013, the amount of capital invested in 2019 decreased by more than 50%. The transport infrastructure consistently ranks first among the sectors of the economy in terms of investments made on the basis of partnership between the state and private business. At the same time, the leaders of investments in PPP projects are such countries as Great Britain, France and Germany. According to the number of implemented projects - France, Great Britain and Belgium. Appropriate preconditions must be created for the effective implementation of PPP projects. Further areas of research are the study of programs, policies and practices used by other countries that actively involve the private sector in the provision of transport infrastructure services; development of relevant recommendations for the implementation and improvement of Ukraine's policy and practice in the field of transport infrastructure development. KEY WORDS: TRANSPORT, PROJECT, MANAGEMENT, TRANSPORT INFRASTRUCTURE, PUBLIC-PRIVATE PARTNERSHIP, DEVELOPMENT, INVESTMENTS, SECTORS OF THE ECONOMY

THE МEANING OF PUBLIC-PRIVATE PARTNERSHIP FOR DEVELOPMENT OF LOCAL SELF-GOVERNMENT

2018 ◽  
Vol 28 (1) ◽  
pp. 351-356
Author(s):  
Sandra Risteska
Keyword(s):  
European Union ◽  
Economic Development ◽  
Rapid Development ◽  
Public Private Partnership ◽  
Public Private Partnerships ◽  
Successful Implementation ◽  
Economic Policies ◽  
The European Union ◽  
Private Partnership ◽  
Public And Private Sector

Each country strives for growing economic development, but no country is able to implement it. Various experiences and projects from the countries of the European Union and other neighboring countries are taken and considered. Towards the end of the 20th century and at the beginning of the 21st century, economic movements are increasingly relying on public-private partnerships, which can lead to a rapid development process through the financing of infrastructure projects. Economic globalization, as well as the emergence of new opportunities for economic activity in the world, are aimed at cooperation of the authorities and businesses in the realization of the socio-economic policies. The implementation and realization of development projects through public-private partnerships is impossible without participation by the relevant institutions of the public and private sector. Above all, direct participation implies expertise, experience and education. Every project that will be realized through various forms of public-private partnership must fulfill certain conditions. Among the conditions for proper implementation of the project are: dialogue, transparency and monitoring. The main feature of PPP is the transfer of the risk to the financing, efficiency and quality of public services, which are usually the burden of the private partner. This paper analyzes and explores the essence of public-private partnership. The conceptual framework for public-private partnership, as well as its strengths and weaknesses, is set. With the application of PPP, the economic development of the infrastructure as a whole, and in particular the development of local infrastructure, is analyzed. The origin of PPPs, its characteristics, as well as the need and importance for their continuous implementation are explained. The application of PPP is considered through the experiences in certain countries of the European Union and the Republic of Macedonia. Then, the responses to previously hypothesized hypotheses are collected: what is the successful implementation of PPP, what is needed for PPPs and why. In the end, the data from the conducted research are collected, analyzed and determined the profile of certain activities, as well as the possible decisions for further strategies for the implementation of the PPPs.

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