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Budget Support for Public-Private Partnership Projects: Realities of Global and Ukrainian Practices
Shuliuk B. S., Tkachyk F. P.

Shuliuk, Bohdana S., and Tkachyk, Fedir P. (2024) “Budget Support for Public-Private Partnership Projects: Realities of Global and Ukrainian Practices.” Business Inform 7:378–385.
https://doi.org/10.32983/2222-4459-2024-7-378-385

Section: Finance, Money Circulation and Credit

UDC 336:658.14

Abstract:
The article substantiates the need to intensify partnerships between public authorities (local self-government) and entrepreneurial entities for the modernization or construction of infrastructure facilities. It is argued that the effectiveness of the implementation of these projects requires the financial participation of the State. The aim of the study is to reveal the best achievements of world experience in the field of providing budget support for partnership projects of both the State and business, as well as to provide recommendations for its effective implementation in Ukraine in order to increase the investment attractiveness of such projects. The results of the analysis of the current practice of implementing public-private partnership projects indicate the active use of public lending, the provision of both the State and municipal guarantees, yet they demonstrate a low level of budget investment. The main types of budget support for partnership projects of the State and business in Ukraine are disclosed: provision of guarantees either on the part of the State or local authorities; financing at the expense of either the State or local budgets; payment to the private partner of payments provided for by the PPP agreement; acquisition by a public partner of a certain amount of goods (works, services) produced (performed, provided) by a private partner, etc. The restrictive influence of the implementation of budget support in Ukrainian practice over a long period of time, which is due to short- and medium-term budget planning, is indicated. It is found that the legislative regulation of budgetary relations in the field of implementation of partnership projects did not contribute to their investment attractiveness. Attention of the article is focused on the expediency of increasing the efficiency of the implementation of these projects in the context of ensuring the financial participation of the State by: implementation of a thorough feasibility study of projects; involvement of members of the public in their development; establishment of sanctions for non-fulfillment of financial obligations by the State partner (fines, penalties); legislative regulation of the boundaries of budget support for PPP projects in accordance with a certain type of its implementation; ensuring transparency in the implementation of budget support for PPP projects; insurance of the financial obligations of the State partner; carrying out control actions in the process of determining the efficiency of budget financing of projects. It is summarized that such measures will make it possible to restore infrastructure facilities, in particular in the process of post-war reconstruction.

Keywords: public-private partnership projects, budget support, infrastructure facilities, budget investments, budget lending, State and local guarantees.

Fig.: 2. Bibl.: 10.

Shuliuk Bohdana S. – Doctor of Sciences (Economics), Associate Professor, Professor, Department of Finance named after S. I. Yuri, West Ukrainian National University (11 Lvivska Str., Ternopil, 46009, Ukraine)
Email: [email protected]
Tkachyk Fedir P. – Doctor of Sciences (Economics), Associate Professor, Associate Professor, Department of Finance named after S. I. Yurii, West Ukrainian National University (11 Lvivska Str., Ternopil, 46009, Ukraine)
Email: [email protected]

List of references in article

Pashynska, K. S. “Modeli finansuvannia proektiv derzhavno-pryvatnoho partnerstva“ [Models of Financing of Public-Private Partnership]. Ahrosvit. 2017. http://www.agrosvit.info/pdf/12_2017/12.pdf
Babiak, N. D., and Nahornyi, Ye. O. “Perspektyvni napriamy finansuvannia proektiv derzhavno-pryvatnoho partnerstva v Ukraini“ [Perspective Ways of FInancing of Public-Private Partnership Projects in Ukraine]. Visnyk ONU imeni I. I. Mechnykova. Seriia «Ekonomika», vol. 22, no. 5 (2017): 158-162.
Solodovnik, O. O. “Dzherela finansuvannia proektiv derzhavno-pryvatnoho partnerstva“ [The Sources of Financing Public Private Partnerships]. Derzhava ta rehiony. Seriia «Ekonomika ta pidpryiemnytstvo». 2012. http://www.econom.stateandregions.zp.ua/journal/2012/3_2012/18.pdf
Ovcharova, N. V. “Rol biudzhetnoho zabezpechennia derzhavnoi pidtrymky proektiv derzhavno-pryvatnoho partnerstva v sotsialnii sferi ta problemy yoho rozvytku“ [The Role of Budgetary Provision of State Support for Public-private Partnership Projects in the Social Sphere and Problems of its Development]. Stan ta perspektyvy rozvytku ekonomiky Ukrainy v umovakh hlobalizatsii: teoriia ta praktyka. Uman: Vizavi, 2014. https://essuir.sumdu.edu.ua/bitstream/123456789/50086/8/Ovcharova_Rol_biudzhetnoho_zabezpechennia.pdf
Koval, Yu. A. “Pravovi zasady spivfinansuvannia v proektakh derzhavno-pryvatnoho partnerstva: finansovo-pravovyi aspekt“ [Legal Basis of Co-financing in the Public-Private Partnership Projects: Financial and Legal Aspect]. Naukovyi visnyk Uzhhorodskoho natsionalnoho universytetu. Seriia «Pravo». 2018. http://surl.li/gjxpda
“Private Participation in Infrastructure (PPI): Data Base. Annual Report“. The World Bank Group. https://ppi.worldbank.org/en/ppi
[Legal Act of Ukraine] (2010). https://zakon.rada.gov.ua/laws/show/2404-17#Text
[Legal Act of Ukraine] (2010). https://zakon.rada.gov.ua/laws/show/2456-17#Text
“Derzhavno-pryvatne partnerstvo“ [Public-private Partnership]. Ministerstvo ekonomiky Ukrainy. https://www.me.gov.ua/Tags/DocumentsByTag?lang=uk-UA&id=cffc9f41-f2ef-45e6-8303-0f8fc0e368f0&tag=Derzhavno-privatnePartnerstvo
Shvadchak, A. “Reforma DPP dlia povoiennoi vidbudovy: perspektyva chy ryzyk?“ [PPP Reform for Post-war Reconstruction: Prospect or Risk?]. Transparency International Ukraine. September 01, 2023. https://ti-ukraine.org/news/reforma-dpp-dlya-povoyennoyi-vidbudovy-perspektyva-chy-ryzyk/

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