THE ROLE AND IMPORTANCE OF THE PUBLIC-PRIVATE PARTNERSHIP IN THE REPUBLIC OF SERBIA IN FINANCING LOCAL ECONOMIC DEVELOPMENT

Abstract

Due to the current needs of the construction of new public infrastructure, investment in goods of general interest and the public interest by providing services in the Republic of Serbia, it is necessary to create a framework to attract private investment, notably through the establishment of public-private partnerships, which would specifically be aimed to increase the number of private investments, contribute to the development of infrastructure and reduce public debt. With the Law on public-private partnerships and concessions, which was adopted in November 2011, the concept of public-private partnership was introduced to the legal system of the Republic of Serbia for the first time, and thus it was allowed to state and local authorities to fulfil the needs for infrastructure and public services and to achieve this model, with clearly established rules of conduct. The law regulates the models for public-private partnerships and concessions, and the Commission of a public-private partnership is established. The Commission has a consulting, informative, expertise and educational role in relation to the formulation and implementation of public-private partnerships, and it is authorized to produce methodological documents, determining the need for new forms of financing apart from traditional budgetary funding. Linking public and private sectors enables support to ongoing development and implementation of local strategies for sustainable development, in order to improve the quality of life. The essence of private sector involvement in traditional public affairs is to reduce the fiscal pressure on local budgets, accelerating infrastructure investments, improving services, and encouraging the growth of output and job creation.