Risk Assessment Regarding the Implementation of Public-Private Partnership Projects in the World Practice

Abstract

In market conditions, the state bore a heavy burden of functions that might be too heavy and sometimes almost unmanageable because of historical development, deepened by the realities of the world economy, as well as various crisis phenomena repeatedly analysed in this and past centuries. At the same time, combining the possibilities of state regulation and market opportunities of business entities, it is possible to achieve significant results by solving a wide range of issues regarding the provision of public services. The research aims to form the potential structure of the European Union development and global practice in the form of development of public-private partnership projects. It is determined by the need that we can agree that the basis of public-private partnership (PPP) relations is the interdependence of business and government regulation which is reflected in the existence of the relations between the representatives of public and private sectors. The result of the research demonstrates that the PPP is a form of cooperation in which the state and private sector jointly implement socially significant projects based on the agreement on the distribution of tasks and risks. Indeed, it is an institutional alliance between the state and business established for a certain period for the implementation of a specific project and ceases to exist after its implementation. To accomplish the research objectives, we have developed a methodological approach to the coordination of the economic interests of the PPP participants. The approach includes the implementation of multivariate calculations of the PPP project internal cost using the method of discounted cash flows, revision of the agreement terms and the choice of such values of the PPP agreement parameters.

Keywords

• Public-Private Partnership; Project Implementation; Animation Effect; Stagnation Overcoming