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PPP framework, features and advantages

Public-private partnership:

• cooperation between public and private partners

public partner - the state, the Autonomous Republic of Crimea, local communities represented by the relevant state bodies that in accordance with the Law of Ukraine "On Management of State Property" manage state property, local governments, the National Academy of Sciences of Ukraine, national sectoral Academies of Sciences;

private partner - legal entities, save for state-owned and municipal enterprises, institutions, organizations;

• based on the contract

within the framework of the implementation of public-private partnership agreement can conclude agreements on concession, property management, joint activity, other contracts.

The objects of public-private partnership are:

• existing, in particular reproducible (through rebuilding, restoration, overhaul and technical upgrade) objects that are in public or municipal ownership or owned by the Autonomous Republic of Crimea, or property of companies, 100 percent of shares (shares) of which owned by the state, territorial community or the Autonomous Republic of Crimea;

• facilities created or newly built facilities in accordance with the of public-private partnership agreement.

The main features of the PPP mechanism, which determine its effectiveness in attracting private business:

  • creation and / or construction (new construction, reconstruction, restoration, overhaul and technical upgrade) of the object of public-private partnership and / or management (use, operation, maintenance) of such object;
  • long-term relations (5 to 50 years);
  • transfer of some risks in the course of public–private partnership to the private partner;
  • private partner’s introduction of investments to the objects of public-private partnership.

Advantages of the PPP mechanism:

• improving the efficiency of management of state and communal property objects;

• improving the quality of public services for the population and business;

• creation of conditions for the use of the latest technologies and introduction of innovations;

• reduction of the burden on the state budget and optimization of budget expenditures on provision of public services and maintenance of budgetary institutions.

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