Public-private Partnership Agreements Research Articles

Public-Private Partnership Agreement in the Context of the Matrix for Assessing their Legal Parameters and Digitalization

Public-Private Partnership Agreement in the Context of the Matrix for Assessing their Legal Parameters and Digitalization

Основные причины споров по проектам ГЧП на примере КНР

The subject of this article is to examine the public-private partnership (PPP) model in mainland China, analyze the nature of the PPP agreement and the disputes arising in connection with it. The research is based on a study of Chinese judicial and arbitration practice on PPP issues.

A Concession Agreement and a Public-Private Partnership Agreement as a Civil Agreement

A Concession Agreement and a Public-Private Partnership Agreement as a Civil Agreement

Development of motivational mechanisms for risk transfer in public-private partnership projects

Subject. The article is devoted to the relations that arise between the State (public) partner and the private partner when distributing risks in public-private partnership (PPP) projects. Objectives. The study aims to establish features of motivation mechanisms designed to encourage private investors to accept the risks arising when making a PPP agreement. Methods. The basic research methodology is to determine the sensitivity of a private investor to certain types of risks based on systematization of motivation opportunities. The study employs content analysis and statistical data. Results. The paper identifies risk groups for which motivational incentives are applicable, and establishes standard motivational mechanisms. It notes that the formation of motivational mechanisms should consider key trends in the influence of the State on private investors. The areas that significantly influence the motivation of a private investor include, in particular, eliminating economic inequality of economic agents, opportunity to access innovation, solving social and environmental problems, creating a stable business environment and necessary infrastructure. Conclusions. Economic factors represent a key motivational element in risk allocation decisions, but they are not always completely dominant. Only a combination of individual and institutional measures can create an attractive environment for private investors considering the investment of their own capital in PPP projects. The findings can be used when concluding PPP project agreements at all levels, in accordance with the legislation on PPP, and ensuring the implementation of the proposed algorithm for the motivational mechanism formation.

Dotacje celowe z budżetu jednostki samorządu terytorialnego na dofinansowanie kosztów inwestycji w ramach umów o partnerstwie publiczno-prywatnym

The article concerns the principles of granting special-purpose subsidies from the budget of a local government unit for co-financing investment costs under public-private partnership agreements. The article discusses, among others, issues of own contribution of a public entity, the method of classification of budgetary expenses, the rules for granting special-purpose subsidies by local government units under public-private partnership agreements, and selected problems related to this form of investment co-financing.

Private-Public Partnership in the Post-War Reconstruction of Ukraine

The article delineates the role of public-private partnership agreements in catalyzing post-war recovery in Ukraine. The paper examines the mobilization status of the Ukrainian economy and public administration in the context of Russia's military aggression against Ukraine. The authors emphasize the need for clarity and structure in legislation, along with refining management mechanisms for the effective fulfillment of security, defense, and post-war recovery needs, considering the experiences of countries that underwent wars or recovered from economic crises. The article underscores the mobilization potential of public-private partnership agreements, enabling the resolution of strategic tasks by utilizing business resources, particularly under the provision of state guarantees. The significance of the scientific, educational, and innovative components in recovery projects is discussed to support human capital and the regeneration of the country's economic potential based on modern technologies and approaches to economic organization. The authors highlight the opportunity to integrate PPP projects into regional recovery strategies through digital platforms for project coordination. The application of digital tools in PPP agreement implementation is noted to facilitate the integration of the scientific-educational component into PPP projects. Coordination of projects and strategies, coupled with the utilization of digital instruments, is deemed crucial for achieving economic and social impact from PPP projects. Additionally, in the post-military recovery context, this fosters openness in project discussions within the public sphere. The article outlines fundamental conditions for PPP effectiveness, involving legislative refinement to mitigate corruption risks and prevent social and economic inefficiencies. The increase in the number of concluded and implemented agreements in post-war reconstruction is identified as an indicator of the quality of legislation and public management.

Toll Rate Policies of India: A Review, Comparison, and Inferences

Tolling as a method of financing transportation systems is becoming increasingly common worldwide. The collection of fees from road users under public-private partnership agreements is based on prescribed toll fees/rates. According to the prevailing level of human, traffic, environmental and economic development, these toll rate policies vary from country to country. In India, road toll rates are prescribed by the Gazette of India: Extraordinary (Part II Section 3 sub-section [i]) published by the Ministry of Road Transport and Highways under the National Highways Act, 1956. Each year, the toll rates for each toll facility in India are set as per the National Highway Fee (Determination of Rates and Collection) Rules, 2008. There is now a need to revisit the policies on fixing toll rates in India. The present study presents a critical literature review of the toll rate policies in India and other developed and developing countries. The study provides a comparison of the different vehicle classes considered for toll rates and it is found that most of the classifications are based on gross vehicle weight (GVW) and on number of wheels and axles. Additionally, the toll rates for different nations are compared and it is found that Indian toll rates are lower than those of the developed countries. Finally, the research gaps are given for further research.

UNLOCKING PRIVATE INVESTMENT BY EXPANDING THE SCOPE OF EXISTING TOLL ROAD PPPs AGREEMENTS

Abstract - The inability of governments in many developing countries to provide basic infrastructure has encouraged the adoption of Public Private Partnership (PPP) schemes. However, many developing countries fail to attract sufficient private investment from the PPP market. This paper develops alternative schemes that can minimize the funding gap and promote sustainable infrastructure investment through modified PPP agreements at later stages of the project life cycle by making special tariff adjustments on existing toll roads. To answer research questions, both conceptual model development and empirical analysis are utilized. The study collects both quantitative and qualitative data for analysis and interpretatio. The results indicate that expanding the scope of existing PPP agreements increases the net present value as it allows for larger cash inflows at the start, leading to a faster payback period. Additionally, this scheme reduces the need for cash deficiency support during the initial period of operation. The alternative schemes encourage lower support for government subsidies, offer a reasonable tariff for users, and provide an attractive investment return for private interests.
 Keywords: Public Private Partnership; Concession Agreement; Toll Road; Sustainable Investment, Funding Gap

THE IMPORTANCE OF CAPITAL MARKET DEVELOPMENT IN REDUCING THE NEGATIVE EFFECTS OF PUBLIC EXTERNAL DEBT

Despite the fact that public debt (loans) attracted on behalf of the state or under its guarantees is a fast and affordable financial resource in relation to the state budget and public-private partnership agreements on financing economic reforms carried out by the state, in many cases it becomes more expensive compared to the capital that can be attracted to re-equipment of an enterprise with state participation. This makes it necessary for the state to take many measures to develop the local capital market. This article, analyzing public debt, examines the role of the development of the market of government securities or corporate securities in reducing the negative consequences of public debt and outlines its proposals to strengthen this value.

Мемлекеттік-жекешелік әріптестікті құқықтық реттеу

Қоғамдық инфрақұрылымды дамыту өз кезегінде жеке бизнес пен мемлекеттің өзара іс-қимылының әртүрлі нысандарын пайдалануды талап етеді. Осындай нысандардың қатарына мемлекеттік-жекешелік әріптестік кіреді. Мемлекеттік-жекешелік әріптестік инвестицияларды тарту, бюджеттік ресурстарды үнемдеу, бәсекелестік пен кәсіпкерлік белсенділікті ынталандыру сияқты оң нәтижелер беріп, көптеген дамыған мемлекеттерде сәтті қолданылуына байланысты, оның реттелуі елдің нормативтік құқықтық актілерінде де өз орнын тапқан. Мәселен, қазақстандық мемлекеттік-жекешелік әріптестік орталығының келтірген ақпаратына сәйкес, тек білім саласында ғана 2020 жылдың 1 маусымына дейін 786 мемлекеттік-жекешелік әріптестіктік шарты жасалған. Бұл жасалған барлық шарттың 56 пайызын құрайды. Мақаланың мақсаты — мемлекеттік-жекешелік әріптестіктің әртүрлі құқықтық нысандарын нормативтік-құқықтық реттеудің ерекшеліктерін талдау. Мақалада авторлар жарияжекешелік әріптестікті құқықтық реттеу қағидаларының мазмұнын жан-жақты зерттеген, тұжырымдаған және мәнісін ашқан. Аталған мәселе бойынша ғылыми әдебиеттерде бар ұстанымдар талданып, олардың осы мәселе төңірегіндегі жаңаша ойлары қарастырылған. Халықаралық ұйымдардың, сонымен қатар экономикасы өзара тығыз байланысқан ЕАЭО елдерінің нормативтік құқықтық актілері талданған. Мемлекеттік-жекешелік әріптестік институтының мәнін білдіретін бастапқы қағидаттар, ережелер сияқты қағидалар құқықтық реттеудің біркелкілігін қамтамасыз ету үшін заңнамалық тұрғыдан бекітілуі керек екендігі дәлелденді. Жүргізілген жұмыстардың нәтижесінде құқықтық реттелу тетіктері ашылып, басқа елдердің тәжірибелерімен салыстырылып, артықшылықтары мен кемшіліктері ашылған.

Managerial agency (re)producing project governance structure and context: Public-private partnerships in the Netherlands

Project managers activate their agentic powers in the (re)production of project governance structure and the institutional context of projects. By examining three ongoing Public Private Partnership (PPP) projects within the Dutch policy path, we provide evidence that managers aim to improve their working conditions when enacting three project governing practices: upscaling issues, adapting, and reproducing. Additionally, we show that public project managers mobilized as a group of interest within the public parent organization are able to influence the policy context and improve their control position for future PPP agreements. We identify "emerging associativity" and "ideological legitimization" as core processes of managerial agency, deployed in project practice and influencing institutional contexts.

Taxation in the implementation of public-private partnership projects

Aim. The presented study aims to analyze the peculiarities of taxation in the implementation of projects using the mechanism of public-private partnership (PPP).Tasks. The author considers the forms and principles of PPP; analyzes the specifics of taxation in PPP; determines tax liabilities in the context of project implementation stages.Methods. This study uses general scientific research methods: analysis, synthesis, comparison, and generalization.Results. The essence of PPP is revealed. The author describes the basic principles and specific aspects of the implementation of projects based on PPP. Special tax conditions for the concessionaire and the private partner are analyzed in the context of taxes and tax obligations under the concession agreement and the PPP agreement are grouped to identify the distinctive features of the tax regime under PPP.Conclusions. In light of the trend of implementation of investment projects and infrastructure development facing insufficient investment in projects, PPP can be viewed as an effective tool. Attracting financing for infrastructure projects requires creating favorable conditions for investors, including state guarantees and tax incentives. In this regard, this study examines the peculiarities of taxation of organizations, in particular special project companies, in the implementation of projects using the PPP mechanism.

Public-Private Partnerships for the UN Sustainable Development Goals achievement

The subject of the study is public relations emerging in the implementation of public-private partnership projects aimed at achieving the sustainable development goals developed by the UN. The object of the study is a set of financial and institutional conditions for the implementation of public-private partnership (PPP) projects based on PPP agreements with a special focus on the UNECE model law “PPP for the benefit of people” being developed. Thus, the proposed approach to PPP for the benefit of people as a separate type of PPP has been criticized. The author, through the prism of sustainable development goals, describes the possibility of improving the proposed international legal norms and rules developed for the implementation of PPP projects. The article also discusses the possibility of introducing the sustainable development agenda through PPP agreements (lex PPPs). When writing the article, the following methods were used: logical, historical, theoretical-prognostic, formal-legal, systemic-structural, comparative law and legal modeling. The methodological apparatus consisted of the following dialectical techniques and methods of scientific knowledge: analysis, abstraction, induction, deduction, hypothesis, analogy, synthesis, typology, classification, systematization and generalization. The main conclusions of the study are that the concept of sustainable development and sustainable development goals are becoming increasingly popular in the practice of implementing investment projects, including those based on PPP. Further improvement of domestic legislation on PPP should be in line with the implementation of best practices, focused not just on the financial component and benefit of the investor and the state, but also on the benefit for people (PPP people first) and the planet (PPP for planet). The main results of the study include the fact that aspects were identified that slow down the advancement of the sustainable development agenda in the field of public-private partnership (contradiction of terms, lack of incentives for implementation for investors), a definition was given to public-private partnership for sustainable development, and It was also revealed that lex PPPs can become an effective tool for achieving sustainable development goals through their implementation in PPP agreements.

The civil Nature of public-private Partnership Agreements

The subject of the research is the legislation and law enforcement practice regarding the legal nature of the public-private partnership agreement and the concession agreement. The authors intend to prove the civil law nature of these agreements; therefore, they review dominant theories on the relevant issue in the doctrine of legal science. The first group of scientists refers these agreements to private-public contracts, the second - to administrative, the third - to private law. The analysis of the legislation confirms the validity of the third group’s point of view. The paper also examines the practice of judicial and administrative authorities, which testifies to the dispositive nature of legal relations arising between private and public partners.

Problems of legal regulation of public-private partnerships in Russian legal research before and after the adoption of Federal Law on Public-Private Partnership. Part one

This article analyzes the current state of Russian legal research on the regulation of public private partnership (PPP). Most of them are related to the regulation of the concept of PPP, its forms, the legal nature of the PPP agreement, the subject and object composition of PPP, the resolution of disputes arising from PPP, in order to systematize of existing scientific approaches to these regulation problems, determining the degree of this knowledge, assessing the dynamics of such research. Systematization of the main scientific conclusions and argumentation of more than 110 legal publications is carried out in the refraction of the Federal Law on PPP, which become a “watershed”, a factor that set the directions of scientific and legal discourse in the field of PPP increased the dominance of some right-wing positions on PPP and the weakening of others. The Federal Law on PPP provoked intensive dynamics and the overall volume of legal research on PPP in general. A comparison of the approaches in the legal publications reveals a preponderance of very significant intra-doctrinal divergences over the few consolidated positions on PPP legal issues even after the adoption of the Federal PPP Act. In particular, there is still a lack of consensus on the key legal definitions — PPP and its forms, as well as the PPP agreement as a contractual construct and its legal nature. The authors note that the existing degree of fragmentation of positions prevents the creation of a solid theoretical basis for understanding the problems of legal regulation of PPPs, significantly tangles the scientific search for options and methods of their solution. In the article proposes promising ideas for future legal research of PPP. The potential for interdisciplinary research is particularly important for the development of existing and obtaining new scientific knowledge about PPP.

Відтворення основного капіталу лісового господарства в умовах цифровізації, євроінтеграції та децентралізації: еколого-економічні аспекти

It is substantiated that the main capital of forestry economy includes the technical-technological, production-economic and natural-resource components, which requires the formation of a modern model of ecological and economic regulation of its reproduction to prevent the processes of exhausting and unbalanced forest use. It is determined that at the present moment the decisive influence on the paces, proportions and scale of reproduction of the main capital of forestry economy is exercised by the processes of European integration, digitalization and decentralization, which to some extent is reflected in the State Strategy for Forest Management of Ukraine until 2035. Studies have shown that in 2013–2021 in the dynamics of most articles of capital expenditures for the purchase of production equipment, cars, devices, machinery and mechanisms, there is an upward trend, owing to both the real growth of capital investments and devaluation-inflationary processes. It is revealed that in 2013–2021 there is a reduction in total capital expenditures for the purchase of road construction equipment, which reduces the ability of permanent forest users to develop a network of forestry roads. It is substantiated that deepening the digital transformation of the forest management system and the movement of forest products requires an increase in capital expenditures in the acquisition of modern software and other information and digital technologies, which will lead to an increase in the share of intangible assets in the structure of main capital of forestry economy. It is found that in recent years certain institutional prerequisites have been formed for diversification of sources of financial and investment support for the reproduction of fixed capital of forestry economy due to an increase in the volume of bank lending and additional attraction of foreign investments. It is proved that a perspective institutional form of diversification of sources of financing for the reproduction of main capital are public-private partnership agreements, which will ensure the consolidation of resources of the public and corporate sectors to accelerate the processes of expanded reproduction and economic development of the forest resource potential of the country.

Decentralized model of financial and investment provision of nature protection and nature exploitation activities: specific formation in urban and rural territorial communities

It has been established that increasing the efficiency of solving the problems of improving the environment and the rational involvement of natural resources in the reproductive process depends on the formation of a decentralized model of financial and investment support for nature protection and nature exploitation activities, which will make it possible to strengthen the investment focus of natural resource and environmental payments, which are concentrated in local budgets. It is substantiated that the key element of the decentralized model of financial and investment support for nature protection and nature exploitation activities is the increase in the share of the transfer of environmental tax and rent and fees for the use of other natural resources to local government budgets with their further accumulation in special environmental funds. It has been proven that it is worth applying a differentiated approach to the formation of a decentralized model of financial and investment support for nature protection and nature exploitation activities for urban and rural territorial communities, based on the significant gap between the size of the public financial potential in these categories of communities. It has been established that the formation of Environmental Protection Funds, where 100% of environmental tax, 30% of rent and fees for the use of other natural resources will be concentrated, should be the main link of the decentralized model of financial and investment support for nature protection and nature exploitation activities in urban territorial communities. 10% of the net profit of utilities. Making informed decisions about land use in both urban and rural territorial communities requires appropriate information support. It is substantiated that additional sources of filling the Environmental Protection Funds of urban territorial communities should be considered the receipt of funds accumulated in connection with the emission of green bonds of a local loan, the implementation of public-private partnership agreements, the participation of local governments in the implementation of grant programs, the receipt of financial assistance from international environmental protection organizations and governments of foreign countries. It was established that in rural territorial communities, the dominant role in financial and investment provision of solving environmental problems should remain at the oblast level of local self-government and regional executive power.

ФІНАНСОВИЙ МЕХАНІЗМ РОЗВИТКУ ДЕРЖАВНО-ПРИВАТНОГО ПАРТНЕРСТВА В УКРАЇНІ

The article is devoted to the study of the role of public-private partnership in ensuring the infra-structural recovery of the country's economy. The presence of the leading role of the appropriate finan-cial mechanism in the process of practical implementation of public-private partnership among the pos-sible areas of its application is substantiated. It was emphasized that the economy of the country during the military aggression has a significant need to ensure infrastructure restoration, stabilization of the processes of economic and social development, the provision of which requires significant amounts of financial resources. Based on the generalization of existing approaches to the interpretation of the es-sence of the "financial mechanism" category, the author's interpretation of the "financial mechanism of public-private partnership" category is proposed as a system of building financial relations between state authorities and private partners regarding the formation, distribution and use of financial re-sources aimed at the implementation of joint interests in relevant projects, ensuring the formation of conditions for effective functioning of the national economy.The specified author's approach made it possible to single out the leading role of the financial mechanism of the public-private partnership in ensuring the effective functioning of the national econ-omy. An author's approach to the construction of a financial mechanism for the development of public-private partnership in Ukraine with a specification of proactive direction for a long-termperiod is pro-posed.It is substantiated that in order to properly function the financial mechanism for the development of public-private partnership in the country, it is extremely necessary to ensure at the legislative level a guarantee to its participants of clear compliance with the terms of existing and future agreements of this cooperation, the establishment of additional state guarantees for projects aimed at restoring critical infrastructure. It is noted that the authorities should ensure the provision of full support at all stages of project implementation, the formation of a system of measures aimed at compliance with the terms of the existing public-private partnership agreement by all its participants. The key consequences of the introduction of the financial mechanism for the development of public-private partnership are deter-mined.

Regional projects of public-private partnership in the field of waste management: The transition to a circular economy and sustainable development

The concept of sustainable development is one of the dominant concepts in the twenty-first century, based on the need to strike a balance between addressing environmental and natural resource conservation, economic growth and meeting human needs and those of future generations. The concept of circular economy is considered as one of the means of progressive movement in the direction of sustainable development through the achievement of the UN Sustainable Development Goals. The transition to circular economy is one of the key strategic initiatives of the Russian Government to address the fundamental challenges of sustainable production and consumption, industrial development, construction, waste management, as well as environmental protection and climate change. Although in recent years the concept of circular economy has become increasingly important in the system of public administration, the search and implementation of practical mechanisms of transition to circular economy is relatively limited. The author of the study argues that the implementation of public-private partnership projects can bring significant benefits for the transition to circular economy, which, in turn, will contribute to the achievement of the sustainable development goals. The paper offers a framework for categorizing public-private partnership as a mechanism for transition to circular economy. The example of regional public-private partnership projects in the sphere of waste management, demonstrates how the framework can adapts the existing parameters of public-private partnership projects (their object and participants, prequalification requirements and tender criteria for private partner selection, public-private partnership agreement terms and financing instruments) to the conditions of their implementation in relation to circular economy and sustainable development goals. The author proposes a series of steps for scaling such public-private partnership projects.

Государственно-частные партнерства в научно-технической сфере

The article discusses characteristic features of public-private partnerships (PPPs) as an instrument of public management of innovative development. It is noted that after the global financial crisis of 2008–2009, strategic PPPs play an increasingly important role in the implementation of large-scale research and technical programs and projects. They are characterized by a focus on solving long-term issues of innovative and socio-economic development, long implementation periods and significant scale, an emphasis on the development of critical technologies, complexity and expansion of functions of a public partner, as well as high risks of research and development. There are two types of such partnerships – institutional (Joint Technology Initiatives) and contractual. Both of these types are formed based on the European Technology Platforms, however, institutional partnerships involve formation of a legal entity, and contractual PPPs are formed based on agreements between the European Commission and industry associations. It is argued that a variety of forms and types of PPPs, in which public entities and corporations, research and educational institutions, and innovative small and medium-sized companies participate, can contribute to solving the priority tasks of Russia’s innovative development. To do this, first of all, it is necessary to amend the current legislation, which lacks norms regulating general principles and rules for the formation and functioning of PPPs in science and technology sectors. Russia’s regulations contain an extremely narrow definition of the purpose and objects of PPP agreements. The goals are not related to the public innovation policy, and the objects are represented by a closed list of 21 objects, which, with the exception of computer programs and databases, belong to technological complexes of real estate and transport infrastructure. According to the authors, adoption of such a legal act will contribute to implementation of the key national programs, projects and initiatives and boost innovation development of the country.