Mechanisms of public-private partnership in the projects of urban agglomerations development

Abstract

The article examines the possibilities of using the mechanisms of public-private partnership when implementing the projects on urban agglomerations development. Specific features of the urban agglomerations development are identified. They are based on combining the efforts of the territorial communities and aimed at implementing joint projects by attracting the appropriate resources, which allows to obtain an agglomeration effect and ensure the improvement of the quality of life of the population. It was proved that to implement joint projects on the basis of using the mechanisms of public-private partnership it is necessary to attract private investors. The experience of using the mechanisms of public-private partnership in Ukraine is analyzed in two directions: by region and by type of activity. It was found that a significant part of projects with using public-private partnership mechanisms in the sphere of life support for large cities and agglomerations is carried out in the form of a concession. Concession allows to attract financial resources needed for the implementation of the development projects due to the ability to manage property over a long period of time, and also helps to prevent a monopolistic increase in the cost of services. The necessity of expanding the use of mechanisms of public-private partnership when implementing joint projects on the development of life support sphere for urban agglomerations was substantiated. Undoubtedly, it will be of great interest for private investors. In particular, it is the improvement of the tariff setting and tariff regulation policy, a strict control over the targeted use of funds, the transparency and economic certainty of costs, the balance of economic interests and the responsibility of those people who take part in the implementation of public-private partnership projects. Here, the scheme of the formation and implementation of joint projects on public-private partnership is presented that includes the observance of certain principles, the use of appropriate regulatory, economic and organizational methods, as well as the support of the economic security through risk management. Scientific approaches to improving the regulatory support for the use of public-private partnership mechanisms have been generalized, and the directions for making changes in the current legislation have been determined. The above measures will contribute to increased use of public-private partnership mechanisms when implementing joint projects aimed at developing the sphere of life support for urban agglomerations.