Academy Review (Jan 2025)

DOMINANTS OF SELECTING FINANCIAL MECHANISM TOOLS FOR PUBLIC-PRIVATE PARTNERSHIP IN THE CONTEXT OF UKRAINE’S POST- WAR RECONSTRUCTION

  • Vasyl G. Demianyshyn,
  • Bohdana S. Shuliuk

DOI
https://doi.org/10.32342/3041-2137-2025-1-62-7
Journal volume & issue
Vol. 1, no. 62
pp. 95 – 106

Abstract

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The article reveals the relevance of applying the tools of the financial mechanism of public-private partnership in the process of building infrastructure facilities, the destruction of which is caused by a full-scale war provoked by russian aggression on the territory of Ukraine. It is substantiated that the aforementioned tools require detailed study and scientific research today, which will contribute to the formation of effective means of restoring our country, guaranteeing its financial stability and ensuring the security of citizens. It is found that the dominant elements of the financial mechanism of partnerships between the state and business are private investment, state financial support for infrastructure projects, attracted grants, investments and soft loans from international development banks. Given the low financial attractiveness of projects for investors, the authors emphasize the need to apply a guarantee mechanism to ensure that the private partner receives a certain level of profit. Thus, it is argued that public-private partnership projects in an unfavorable external environment require state support to reduce the risks of investments and increase the reliability of infrastructure projects. Proving the leading role of concessional loans and guarantees of the international community in the structure of the financial mechanism of public-private partnership, the authors reveal the main problems that determine the low level of participation of these institutions in financing domestic projects. To ensure the effectiveness of the aforementioned financial mechanism tools, the authors emphasize the need to create a favorable legislative framework, develop a strategy for the development of public-private partnerships at the national and local levels, and combine the efforts of institutions (governmental, financial and credit, public and scientific experts) operating in this area.

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