Legislation on the public private partnership as a factor in regional development

Abstract

Highlights of the legislative basis: a/ Law on Public Private Partnership; b/ Regulations for implementing the Law on Public Private Partnership.  Public-private partnership (PPP) is a long-term contractual cooperation between one or more public partners on the one hand and one or more private partners, on the other hand, to carry out activities of public interest in achieving better value public input resources and allocation of risks between the partners.  PPP risks are shared between public and private partner. The distribution of risk is determined on a case of PPPs, depending on the capabilities of partners to evaluate, monitor and manage risks.  Public-private partnership is implemented through PPP contract. The term PPP contract can be from 5 to 35 years The exact length of the PPP contract is determined based on: financial and economic performance of the PPP project, including the time required of the private partner for recovery of money at the specified rate of return for the private partner; technical and / or technological features of the site, which operates in the public interest and / or of the activity of public interest.  Public partners are: ministers and heads of departments State PPP, which have the object of public interest activities carried out with objects of art. 4 para. 1 from Law for Public private partnership that are State property and/or which on power of normative act are assigned of body of central executive power; Mayors of municipalities – for Municipal PPP have for subject activities from public interest carried out with Objects art. 4 para. 1 from Law for Public private partnership that are property of relevant community and/or which by virtue of a normative act are assigned of bodies of local self-government or of Mayors of municipalities; state and Municipal publicorganizations for activities from public interest carried out with Objects art. 4 para. 1 from Law for Public private parntyorstvo that aretheir property and/or which are them provided with Law, act for their creation or with another act of competent authority.  Private partner Party PPP contract can be a capital company has an existing or newly established, subject to the requirements of this law. Not allowed equity company party PPP contract to issue bearer shares. The annual financial statements of the private partner is subject to inspection by a registered auditor under the Independent Financial Audit. The subject of this material are some basic legal principles characterizing the role of public-private partnership as a factor in regional development. PPP can be described not only as a factor but also as an important and effective mechanism in the regional development.This mechanism can find a broad scope for application, as both the European and already some examples from the Bulgarian practice show.