The goal of this paper is to inform about the theoretic entries, concept and principles on which the public private partnership arrangements and relations are based. According to the theoretical starting points both foreign (Edvard Yescombe, Jan-Erik Lane, Ben Jupp, Bozena Gulija) and local authors (Sladjana Benkovic, Hasan Hanic, Dobrosav Milovanovic, Silvana Ilic, Vladimir Poznanovic), which have been practically applied in many EU countries, it can be stated that there are various types of public private partnerships, which can be used in order to raise the level and quality of public services which derives from different project activities in which the public and private sectors associate. The adoption of a basic institutional framework at the EU level ensures clear and equal 'game rules' to all prospective private partners who, in collaboration with the public institutions, want to implement the projects of local, regional, national or supranational importance. The main point of the PPP arrangements is based on contractual relations, distribution of risk, legal security and more quality, faster or more efficient solving of problems for the interests of citizens. The EU experiences are different, with more positive compared to negative aspects, as well as with the projects whose value is estimated at up to several tens of millions of euro. All possibilities of the new Law, which regulates this field, have not been yet sufficiently exploited, and soon a bigger initiative should be expected both from the state and private sector for the sake of participating actively in the PPP arrangements.
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