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      Home » Activity » Public - private Partnerships » Overview of Public-private Partnerships
PPP framework, features and advantages
05.09.2018 | 12:05 | Investments department.

Public-private partnership:

• cooperation between public and private partners

public partner - state or local communities represented by relevant public bodies, or local self-government bodies;

private partner - legal entities, save for state-owned and municipal enterprises, or sole proprietors;

• based on the contract

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

Objects of public-private partnership are objects that are in state or communal ownership.

According to the Law, the objects of public-private partnership can be:

• existing facilities in public or municipal ownership, or owned by the Autonomous Republic of Crimea, including subsurface plots, in particular facilities to be renovated (through rebuilding, modernization, or technical upgrade);

• facilities created or acquired as a result of performing the public-private partnership agreement.

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

  • granting the rights for management (use, or operation) of the partnership property, or acquisition, creation (construction, renovation, modernization) of the public-private partnership property, with further management (use, or operation), subject to the private partner assuming and performing investment obligations in accordance with the public-private partnership agreement;
  • 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 targets of the partnership from legitimate sources.

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.

Ministry of Economic Development,
Trade and Agriculture of Ukraine
01008, Ukraine, Kiyv city,
Grushevsky str., 12/2