APPLYING A CONTINGENCY APPROACH TO PROJECT MANAGEMENT WITHIN MESO-LEVEL PUBLIC-PRIVATE PARTNERSHIPS

Abstract

This paper investigates the application of a contingency approach to managing meso-level public-private partnership projects. It is argued that situational management in implementing public-private partnership projects should rely on the so-called risk-contributing factors. It is emphasized that the contingency approach in the context of public-private partnerships is based on developing a set of indicators and integral index calculation used to rank both the projects themselves and their application in terms of territorial and sectoral aspects. It is proved that the integral coefficient at the meso-level reflects the most favorable environment for doing business, including basic frameworks for realization of public-private partnership projects. According to the calculations carried out within this study, at the regional level by selected indicators, the Mykolayiv region has demonstrated the most favorable conditions. Accordingly, the Donetsk region has the highest level of transaction costs and the highest rate of project implementation risk, i. e. the absolute risk value makes up 0.482. The high risk index for this region stems from military activities, low infrastructure development, lack of sufficient production capacity and, consequently, significant commercial and administrative costs for current operations. Thus, it is concluded that the assessment and multilevel analysis based on integral indicators, absolute and relative risk indicators are sufficient for the optimal selection of public-private partnership projects upon the criterion "the lowest project implementation risk – the greatest effects in different areas of activity.