Public-Private Partnership as an Institute of Combined Public and Private Efforts to Solve Socially Important Tasks in Ukraine

Abstract

It is determined that, the Ukrainian economy is facing systemic challenges which it needs to overcome to ensure sustainable development of its communities. This requires working out new effective mechanisms and forms of interaction between the government and businesses that would balance the interests and rely on the principles of mutual gain maximization. The limited investment resources of the state render it impossible to properly finance regional socio-economic projects and develop infrastructure. Historically, it so happened that the world would tackle the above problems, especially under unfavorable macroeconomic conditions, using the potential offered by the public-private partnership (PPP) as a form of interaction between the public and private sectors. The private sector tends to increase profits; obtaining more resources for doing business through attracting public resources; improving the efficiency of the use of their resources due to the effect of financial leverage in the merger of own resources with state resources; creation of a certain set of guarantees and preferences; removal of barriers to its development. It is concluded that, the specific nature of the state and municipal property and the limitations of the budget funding for social and infrastructure facilities, as well as the need to address socio-environmental and economic problems in an effective and efficient way determine the need to imtroduce PPP models into practice. Ukraine has embarked on the trajectory of PPP development as a pre-requisite for ensuring self-sufficiency of the state and its territorial communities. Its course is reasonably sensible because it strated with the relevant changes in the legal framework and creation of the supporting units to facilitate the PPP implementation and development. The main spheres the PPP projects are being implemented are major infrastructure facilities (electric power and heat production, water treatment, waste management, roads) and social life (health care and leisure).