Public–partner Potential and Public–partner Attraction of Territorial Entities

2019;
: pp. 137 - 144
1
Ivan Franko National University of Lviv

Diagnosing public-partner potential and public-partner attraction of territorial entity is necessary to position and present the advantages of territorial entity to potential private partners. Not only this problem is specific to such entities, for example within a region, but it also has an interregional nature (i.e. when there is a competition between regions about investments based on public-private partnership).

The concept of the public-partner attractiveness of territorial entity is proposed to understand as the ability of such entity to generate interest of a private partner to participate in public-private partnership relations, in particular, by investing into the objects of the partnership and obtaining the rights to manage (purchase, create, etc.) objects according to the terms of the contract. It is also established that the high public-partner potential is the key factor for the formation of favourable public-partner attraction of territorial entity. This relationship is suggested to understand as an important area of research, since, in the conditions of limited (first of all, public) funding, territorial entities within the framework of the public- private partnership model should actually compete with other such entities for a private partner willing to enter into these relations, invest and take the risk (quite often, very high).

The concept of the public-partner potential of territorial entity is offered to understand as all available prerequisites for using public-private partnership opportunities for the implementation of socially significant projects, positive impact on human capital and enhancing the competitiveness of territorial entity.

It is emphasized that the high level of public-partner potential and public-partner attraction of territorial entity provide it with the additional inflow of financial resources and increase the efficiency of its use, as well as they are more promising for investments and innovations attraction. In their content, these concepts reflect certain characteristics of a territorial entity, the totality and magnitude of which enable it to participate better in relations based on the public-private partnership model than other territorial entities.

It is established that the presence of a certain level of public-partner risk influences the participation of private partners in the projects of the public-private partnership of territorial entity. Therefore, even with a high level of public-partner potential, under the influence of a high level of public-partner risk, a private partner may not consider certain options for participation in a public-private partnership.

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