ECONOMIC PRINCIPLES OF ATTRACTING INVESTMENTS TO UKRAINE ON THE BASIS OF PUBLIC-PRIVATE PARTNERSHIP
ECONOMIC PRINCIPLES OF ATTRACTING INVESTMENTS TO UKRAINE ON THE BASIS OF PUBLIC-PRIVATE PARTNERSHIP

Summary/Abstract: The article analyzes the economic foundations for mobilizing private and blended capital in Ukraine through public-private partnerships (PPP) amid the urgent need to restore and modernize infrastructure under constrained fiscal space. It is shown that PPPs make it possible to combine long-term resources with performance-based remuneration and a rational allocation of risks, whereas traditional public investment mechanisms neither guarantee sufficient funding volumes nor ensure whole-life asset efficiency. The article demonstrates the need for a coherent de-risking architecture combining political and war risk insurance and guarantees with VGF and MRG instruments, indexed payments, FX hedging, and the development of long-term hryvnia financing through project and municipal bonds and the participation of institutional investors. The paper proposes institutionalization measures including a central coordinating body, regional hubs and a Project Preparation Facility, as well as standardization of template contracts and KPI/SLA indicators, fiscal rules (limits on direct and contingent liabilities, a registry and regular stress tests), alongside open data, market sounding and digital contract management tools such as BIM, CMMS and IoT. The importance of ESG requirements and transparent monitoring is emphasized.

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