Evaluation and selection of optimal form of public-private partnerships for the lme “Zaliznychneteploenerho”

Mykhalchyshyn N. L., Demkiv O.-I.

In the article lack of availability of competitive relations in certain commodity markets
of the national economy to ensure maximum possible efficiency of enterprises, which
necessitates the functioning of markets in a state of natural monopoly, was justified. Under
certain conditions, only this type of market model makes it possible to minimize the price level
and optimize production costs. It was determined that despite the growth of enterprises
activity indicators in the monopoly market structure, potential of improving the efficiency of these markets compared with the competitive structure are not fully implemented. It was
noted that the lack of appropriateness of failure of market functioning in a state of natural
monopoly makes it necessary to study the possibility of increasing the efficiency of these
structures through the use of alternative mechanisms to competitive pressures, one of which is
a public-private partnership.
Features of passage stages determine the optimal form of public-private partnerships,
that include analysis of specific problems of the natural monopolies, studying the
characteristics of each form of public-private partnerships, evaluating the ability of public-
private partnerships to eliminate existing inefficiency problems and determination from
results of the analysis of the optimal shape, were described.
Main problems functioning LME “Zaliznychneteploenerho” according to the
components of the internal environment, were identified and systematized based on the
analysis of financial and statistical reports, analysis of the company activity. Influence the
factors of external environment on enterprise, such as belonging to communal ownership and
natural monopolies, the impact of public policy on regulation of natural monopolies and
entities operating in related markets, were characterized.
Public-private partnerships as a tool for solving problems of the natural monopolies
have been characterized. The most common forms of public-private partnerships with their
features such parameters as the term agreement, obligations of the parties, the distribution of
risk, advantages and disadvantages, etc. have been described. Evaluation of the ability of each
form of public-private partnerships to solve any problems LME “Zaliznychneteploenerho”
activities was conducted.
Inability to use the following types of contractual alternatives as privatization, lease
agreements, contracts for services and contracts management through weighty social value of the
entity and the need for the involvement of private investment, has been set based on evaluation of
public-private partnerships. The optimal form of public-private partnership for the sampled
enterprises, which can be implemented at the local and national levels, was established.
As a result of the study it was determined that, through the use of an individual approach to
the choice of the form of public-private partnerships and maintaining the required level of impact
of state and local governments to the activities of the entity, public-private partnerships are an
effective mechanism to minimize the manifestations of problems ineffectiveness of entities
operating in the markets of natural monopolies and in adjacent markets.