Prospects of using public and private partnership for the reconstruction of Ukraine in the post-war period

: pp. 29 -43
Lviv Polytechnic National University, Ukraine
Lviv Polytechnic National University, Ukraine

Problem statement. Because of the military aggression of the Russian Federation, the Ukrainian people and the authorities face demanding challenges regarding the reconstruction of the country. One of the main priorities during the recovery in the post- war period is to find new, alternative sources of financing, in particular, using the advantages of public and private partnership (PPP).

Analysis of recent research and publications. The proposals of Ukrainian and foreign researchers and practitioners regarding the PPP mechanism application for implementing the reconstruction of public and industrial buildings, construction and management of new highways, and other projects may be valuable for post-war reconstruction of Ukraine. Additional research on the PPP specifics in martial law and the post-war period is necessary to improve the regulatory and institutional support of public and private partnership and investment activities.

Highlighting the previously unsolved parts of the general problem. Identification of opportunities for increasing the transparency of relevant measures, improving legislation related to the PPP, including in the field of concession instruments, development of proper institutional support for the PPP are significant areas of research related to the further development of public and private partnership in Ukraine, in particular, in the conditions of martial law and the post-war period.

Presentation of the main material. Restoring the functioning of critical infrastructure facilities as soon as possible and gradual reconstruction of other objects which are necessary for the full life of the country are the essential tasks of Ukraine. It is not possible to put the financial burden only on the state and local budgets in a short period. Private investments should be attracted through the PPP mechanism, which, according to the experience of other countries, is one of the most effective ways to attract funds for developing the infrastructure and providing services to consumers in many fields.

The experience of countries that have rebuilt their national economies after military conflicts in recent decades is helpful. The legislation of the Republic of Serbia uses the term "Public contract" and the concept of public and private partnership, which enables central and local authorities to meet infrastructure needs. The use of PPP in this country allows attracting private capital for construction and operation of roads, schools, water supply, landfills, and other projects in a lack of budgetary funds. The experience of other countries in promoting PPP development shows the effectiveness of the functioning of specialized institutions. For example, the Kosovo PPP Committee promotes and supports the implementation of PPP in many sectors of the economy to provide more efficient infrastructure and public services at a lower cost. According to the analysis of international experience, the most common reconstruction projects using PPP in the world are those implemented in the road and transport infrastructure, port, railway, and aviation activities, pipeline infrastructure development, stadiums, etc. The historical example of the aid of the United States of America to European countries after the Second World War is valuable. Accordingly, it is institutionally appropriate to provide help to Ukraine through a specialized agency with the participation of donor countries and in agreement with the International Monetary Fund and the World Bank. Similarly to the "Marshall Plan", it would be appropriate for aid recipients to provide detailed plans and reports on investment projects and the progress of their implementation to the created agency that would establish and regulate the relevant criteria and requirements.

Creating the national coordinating body in Ukraine, developing a strategy and determining priorities for the country’s recovery, and forming the central and regional project management teams are necessary steps for combining public finance and private investment. It is essential, in particular, in conditions of concession, which provide for the transfer of the state or municipal property to a private investor for temporary use. Moreover, there should be provided the availability of information and transparency of the activities of relevant institutions and equal opportunities for potential private investors to participate in PPP projects for restoring Ukrainian facilities.

Conclusions and prospects for further research. The public and private partnership mechanism aims at increasing the efficiency and quality of the implementation of reconstruction projects and commissioning the new facilities within the post-war reconstruction of Ukraine. The transparency of investment activities based on the PPP mechanism and the rational distribution of powers in cooperation with interested parties should play an important role. The experience of European countries that carried out reconstruction after military conflicts indicates the feasibility of developing institutional support for the PPP mechanism and transparency of information and activities of the relevant institutions.

It is advisable to conduct further research on the problems of reconstruction of Ukraine involving the public and private partnership mechanism by improving the institutional support of investment processes in Ukraine.

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