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in order to attract additional investments and as a means of increasing the efficiency
of financing from the state budget. Public-private partnership
can be defined as a
mutually beneficial cooperation between the public and private sectors with a legal
basis, which is jointly implemented by the partners under the condition of more
effective implementation of the project. Or, if one of the parties does not have enough
opportunities to implement the project, the necessary resources for the
implementation of the project, including organizational and legal information, can be
established on the basis of an agreement. The purpose
of this cooperation is to
implement socially important objects, as well as to attract private investments to the
economy. The form of PPP is a legally formalized system of relations between the
state (municipal structure) and the private sector, which includes joint financing and
risk sharing.
At the same time, state property, state (municipal) services are the
subject of such relations. Organization of PPP projects includes several stages.
Private sector and public cooperation represents the participation of business
entities in the organization and management of production,
household services and
social infrastructure, as well as in the provision of social services.
Based on the above, public and private partnership relations are a system of
economic relations that represent the role and role of the government and economic
entities in complying with social obligations and necessary reforms and state
investment policy. Public-private partnership is a business relationship and economic
relations between the state and the private sector established
for the purpose of
development, planning, financing, construction and operation of infrastructure
projects.
From an economic point of view, the purpose
of PPP is to stimulate the
attraction of private investments in the production of services, work and consumer
goods, which should be provided at the expense of the relevant state budgets.
Properly organized public and private partnership relations distribute tasks,
obligations and financial risks among subjects in the most optimal way. In public-
private partnership, state agencies, including ministries, committees, local authorities
or
state-owned enterprises, are involved in the relationship. Partnerships with the
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private sector may include local or foreign business entities, as well as legal entities
or investors with technical or financial capabilities related to a project.
Given the volatile economic and political environment nationally and globally,
states and private firms are required to rely on modern and up-to-date approaches to
make informed and rational decisions about their private investment in infrastructure.
Therefore, this paper seeks to explore and analyze the factors that may influence PPP
mechanisms using a comprehensive set of macroeconomic data.
In
conclusion, it should be noted that the comprehensive approach of our
government to accelerate socio-economic development through the effective use of
the economic potential of the regions has already produced its results and will serve
our rapid development in the future. The most important thing is that through
integrated and balanced
socio-economic development, the living well-being of the
population will increase organically. In these processes, public-private partnership
relations have a special place and community. Because the economic development of
the country depends on the infrastructure, public-private partnerships are undoubtedly
one of the best solutions for infrastructure development. Therefore,
the analysis of
financial relations in public-private partnership, its development is one of the main
issues in financial reforms.
