Interests of Public-Private Partnership Participants Adjustment Cover Image

Узгодження інтересів учасників державно-приватного партнерства
Interests of Public-Private Partnership Participants Adjustment

Author(s): Viktoriia Budnyk
Subject(s): Economy
Published by: Інститут трансформації суспільства
Keywords: Public-Private Partnership; Coordination of Interests; Internal Project Value; Concession Agreement; Izmail Seaport

Summary/Abstract: Introduction. Public-private partnership (PPP) introducing in Ukrainian economy is connected with answering to the question whether such projects realization is economically and financially grounded, as well as working out approaches of financial and contractual relations regulation between the participants of PPP. Purpose of the article is to work out methodic approach to the interests of public and private partners’ adjustment in PPP projects development and realization. Results. Coordination of PPP participants’ economic interests is proposed to realize according to criterion of PPP project’s internal value maximization from the position of a state, as well as an enterprise, which is calculated by the method of financial flows generated during the project realization discounting. The worked out approach covers multivariate calculations of the PPP project’s internal value, consideration of contractual conditions and such contract parameters choosing which result in maximum internal value of the project from both public and private partners’ point of view. Proposed methodic approach was fully approbated while grounding the conditions of PPP under a concession contract of fleet support facilities construction and exploitation in Izmail seaport of Odesa region (Ukraine) for the port’s ecologic security preservation. The contractual conditions consideration allowed proposing the most suitable project variant among three possible. It was concluded that the maximum project value would be achieved when the private partner’s input was 75% of the total financing costs. Conclusion. Application of the author methodic approach leads to flexible mechanism implementation for the partner relationships stipulating between public and private partners in their mutual projects and finding of agreeable variants for such projects financing.

  • Issue Year: 2015
  • Issue No: 1-2(2)
  • Page Range: 47-50
  • Page Count: 4
  • Language: Ukrainian