The world experience of public-private partnership.

Mostepaniuk A.V.

Taras Shevchenko national university of Kyiv, Ukraine

The world experience of public-private partnership.

The analysis shows that public-private partnership is characterized in world practice by a wide range of business relationships. This concept is used to describe various ways of using resources of private capital to meet important public needs. At the same time public-private partnership the most successfully used in the process of developing and exploitation of transport (roads, rail roads, airports, ports, pipelines) and social facilities (health, education, entertainment, tourism), housing (water, electricity, water, gas, etc.).

Among developed countries the largest scale of using PPP projects reached by U.S. There more commonly used such types of PPP as "design-build", contracts for the management, concession. Great role in the development of these relationships played by state corporations, enterprises, created by the government, authorities of the states and municipalities on a commercial or non-commercial basis. The owner of such enterprises is the state.

The analysis shows that public-private partnership in the United States develops the most successful in the field of construction of roads and public utilities. The strategic decision of the state about the application of PPP in the sector of public utilities is based on the fact that spending time and resources on designing and infrastructure objects building by private companies compared with public enterprises is much lower, this advantage often reaches 15-20% [3].

Note that in the period of 1985-2004 in the U.S. was implemented 62 PPP projects related to building of roads with total investment of 42 billion U.S. dollars. In 2005-2006 was started 58 new projects worth 54.3 billion dollars, that reflects the growing role of PPPs in the road sector of the U.S. At the same time network of toll roads and concessions for their construction and operation is growing fastest. 64 projects of PPP took place in road sector including 52 projects related to the construction of toll and free roads in 2007. However, 61% of the total investment was used for building toll roads [3].

Among the European countries that actively use and develop the Institute of PPP, the best results reached Britain. At 1 January 2009 in the UK were registered more than 540 PPP projects with a total investment of 50 billion pounds sterling. Among the objects that are in the PPP regime there were 77 hospital facilities, 94 educational projects (which included over 800 schools), 43 transportation facilities, more than 300 facilities in other areas of services (facilities, recreation, entertainment, culture , housing, waste disposal, defense). The average duration of such projects – 25-30 years. At the same time by 2030 in the UK expected to increase investment in PPP projects to more than 90 million pounds sterling that is 15% of total investments [1].

Analysis of the use of PPP projects in the EU shows that the largest share of such projects are implemented in the UK (52.5% of total cost and 61.1% of quantity). The second place in the EU by volume of investments into projects PPP took Spain with 11.4% of investments and 10.1% of the total number of projects, the third place – Portugal with 7% of total investments and 3.1% of their quantity [1].

As for sectoral distribution of public-private partnership that implemented in the UK, Germany, Italy and France, then in the first place are projects related to constructing objects of health care; in the second place – PPP in building of educational institutions; in the third – road construction.

As for developing countries, in the period 1990-2009 years in these countries had implemented 4,540 projects PPP with a total investment of 1,475.53 million dollars. Leader in the number of PPP projects is the region of Latin America and the Caribbean with 1428 projects and total investment of 579.121 million dollars. Least of projects were implemented in the Middle East and North Africa – 130 projects with an investment volume of 73.751 million dollars [2].

Experience review of the implementation of public-private partnerships among developing countries shows that the first place by the number of PPP projects took China, where it was implemented 931 project, second place – Brazil (467 projects), the third – India (380 projects ). Leader for its investing amount in PPP projects is Brazil with a total investment of 270.346 million dollars, in the second place – India (158.397 million dollars), in the third place is China (111.806 million dollars) [2].

The analysis shows that in developing countries the most intensively used PPP projects related to construction and operation of highways, in the second place – building airports, prisons, water treatment facilities. This distribution points to state policy aimed at development of these industries. At the same time the use of PPP projects promotes the involvement of private sector investment, reduce public sector costs, risk sharing between partners.

Thus, in the modern world practice of public-private partnership extensively implemented in various fields through construction of objects of infrastructure or social purpose. Expenses of private sector compensated through fees for use of facilities or in the form of a certain state benefits.

Analysis of international experience of the use of public-private partnership demonstrates specificity of partner relations in developing countries, to which Ukraine belongs. The main directions for development of partner relations between state and business in Ukraine are:

- formation of an effective mechanism of social responsibility;

- definition of strategy and institutional structure against corruption;

- improving legal basis of public-private partnership.

The experience of other countries helps the government to take effective action to stimulate and support the development of PPP in Ukraine and to identify new mechanisms for such cooperation.

References:

1. Public-private partnerships in Europe – before and during the recent financial crisis. http://www.eib.org/epec/resources /efr_epec_ppp_report.pdf

2. The Private Participation in Infrastructure (PPI) Project Database. http://ppi.worldbank.org/explore/ppi_exploreRankings.aspx

3. User Guidebook on Implementing Public-Private Partnerships for Transportation Infrastructure Projects in the United States. Federal Highway Administration (FHWA). Washington. 2007. p. 60.