PUBLIC PRIVATE PARTNERSHIP OFFERS NO MAGIC SOLUTIONS, BUT A METHOD FOR RESOLVING COMMUNITY NEEDS.

Abstract

Public-private partnership (PPP) is considered an important tool in financing public sector investments, its purpose being to provide more capital to invest in the most efficient manner. PPPs development has become more important as the economic and financial crisis has challenged the ability of the public bugets to raise adequate financial means and to allocate resources to specific projects. Local governments agree with the participation in realization of PPPs, which leads to increased efficiency, a shorter implementation and a value of the provision of services as large as possible. The advantages of implementing concern: appropriate sharing of risks and responsibilities; mainly public sector retains sovereign powers and the private sector has tasks requiring the implementation; private investment lifecycle as decisive elements of the forms of stimulation of PPP is long; it provides a long-term contractual relationship and offers innovation, in particular by specification of results, level of service and payment mechanisms . In the Member States of the European Union, the adoption of public-private partnership was made differently from one sector to another and from one country to another. At this point one can distinguish three types, namely: " Advanced PPP adopters" with very important projects in the transport sector (road, rail) and in the construction of public buildings and equipment (schools, hospitals, prisons ) but also in the environment sector( water / waste treatment, waste management ); "Medium PPP adopters ", with projects completed or under execution and excellent results in the transport sector; " PPP adopters at a low level ", where PPP is lacking in all sectors and is in a preliminary stage of adoption. Great Britain, Spain and Romania are three countries and at the same time three levels of adopting, corresponding to the three types of PPP adopters. Although the partnership is thought as one which must bring benefits to both parties involved in the implementation, it can happen that the Partnership and Cooperation effort to fail. Reasons for failure may be due to several reasons, including the lack of an adequate legal framework, which restricts the possibility of the government to engage in forms of partnership with the private sector or the lack of mutual understanding of the specific sector of the government and the private areas.

Keywords

• public private partnership (PPP ), public sector, private sector, project, economic recovery, community needs .