: 115-124
Lviv Polytechnic National University, Department of Administrative and Financial Management
Lviv Polytechnic National University
Lviv Polytechnic National University, Department of administrative and financial management

The road network is one of the most important branches of the economy, which performs the function of a kind of circulatory system in the complex organism of the country. It not only helps to meet the needs of the economy and the population in transportation, but together with the cities forms a "framework" of the territory, has a significant impact on the dynamism and efficiency of socio-economic development of individual regions and the country as a whole. World experience shows that without a developed transport, automotive network can not create an efficient market economy.

Ensuring the development of the road network and improvement their transport and operational condition is a necessary condition for further socio-economic development of the state and society. Unsatisfactory condition of the road network has a negative impact on the social and economic situation of the country, international image and key indicators such as gross domestic product, development of productive forces, state budget revenues, employment, performance of road and other modes of transport and more.

The level of financing the road networks for the last 10 years makes 14-34 percent of the minimum necessary need for repair and maintenance of a network of highways defined by scientists. Due to insufficient funding, the pace of implementation of new technologies, machines, mechanisms, modern materials and structures is slow and does not meet current needs. The process of business investment in the road industry in Ukraine in modern conditions is risky due to imperfect legislation, low development of technology, which can be eliminated through the introduction of concession approaches in the development of the industry. The impact of public-private partnership on social risks is considered and ways to minimize them are suggested. Solving the problems of financial support for the repair, reconstruction and maintenance of roads requires the integration of State efforts, regional and local authorities, research and practice of their application, legal framework, as well as financial and material resources in international and Euroregional cooperation . It should be noted that the most problematic in terms of effective provision of transportation by state roads are sections of roads on international transport corridors. On the one hand, the financial and economic capabilities of the state and the region are still insufficient for their reconstruction, and on the other - the postponement of these problems has a negative impact on the national economy and contradicts international trends, prospects for the transport network.

The object of the article is the process of applying the concession to improve the financing of costs for repair, reconstruction and maintenance of roads in terms of social risks.

The subject of the article is the socio-economic relations between the subjects of the concession and the public.

The main purpose of the article is to substantiate the need for the introduction of a road concession, taking into account developed recommendations for social risk management.

In accordance with the purpose of the article, the authors set the following goals:

- definition and analysis of the conditions of public-private partnership in Ukraine;

- identification of the causes and consequences of the development of social risks in terms of road concessions based on the analysis of international experience in the application of tolls on highways;

- substantiation of the main directions of social risk management in the conditions of the road concession and formation of the corresponding conclusions.

The result of research is the authors' proposed ways to minimize social risks in terms of road concessions.

1. Kruhlashov. Bernshtein Еduard (2011) Political encyclopedia Ю. Левенець, Ю. Шаповал. (Ed.). (2008). Applied Economics. 59-60 Kyiv: Parlamentske vydavnytstvo, [in Ukrainian]

2. Vikarchuk O.I.(2006) Concession in a transformational economy. Extended abstract of candidate's thesis. Kyiv [in Ukrainian]
3. Kirillov , NV (2018). International strategies of public private partnerships in the transport sector. Retrieved from:
4. Makovska Yu.A. (2013)Concession contracts for future construction of highways of Ukraine. Management of projects, system analysis and logistics. Kyiv. National Transport University. Vol. 11.
5. Mario Arata, Marcello Petrangeli, Francesco Longo ( 2016) Innovative approaches to implement road infrastructure concession through Public-Private Partnership (PPP) initiatives: a case study Available online at
6. Solodovnik, O. O. (2017), "Development of road economy of Ukraine in the post-crisis period" ["Rozvytok dorozhnʹoho hospodarstva Ukrayiny u postkryzovomu periodi"], Black Sea Economic Studies, Issue 23. P. 55-59, available at : (last accessed 01.09.2020).
7. Bezugly, A.O., Pechonchik, T.I. (2014), "Economic mechanism of distribution of financial resources for the needs of road economy as a component of the strategy of efficient management of public roads" ["Ekonomichnyy mekhanizm rozpodilu finansovykh resursiv na potreby dorozhnʹoho hospodarstva yak skladova stratehiyi efektyvnoho upravlinnya avtomobilʹnymy dorohamy zahalʹnoho korystuvannya"], Roads and bridges, Issue 14, P. 125-130, available at : (last accessed 25.09.2020).
8. Bilyk O. (2020) Mekhanizmy rehuliuvannia ta instrumenty otsiniuvannia sotsialnykh ryzykiv: monohrafiia [Mechanisms of regulation and tools for assessing social risks: a monograph]. Lviv: Rast-7.
9. JH van Wyk (2019) Managing social and political risk on toll road concession projects. Retrieved from
10. The Verkhovna Rada of Ukraine (1999), Zakon Ukrainy «Pro kontsesiiu» [The Law of Ukraine "On Concession"], available at: (Accessed 25 September 2020).
11. Kontsesiia: vsi "za" i "proty" derzhavno-pryvatnoho partnerstva [Concession: all the pros and cons of public-private partnership]. Ekonomichna Pravda [Economic truth] Retrieved from:
12. Hurenko M. (2014), "Problematic aspects of the implementation of the concessions in the construction and maintenance of roads in Ukraine", Visnyk Kyivs'koho natsional'noho universytetu imeni Tarasa Shevchenka, [Online], vol. 1 (99), available at: file:///C:/Users/HP/Downloads/VKNU_Yur_2014_1_22%20(10).pd
13. Yevtushenko C. (2012), "Concession agreements first steps Ukraine and European experience", available at: (Accessed 29 September 2020).
14. Experience of project construction and maintenance of roads in the concession", Dorozhnia haluz' Ukrainy, [Online], vol. 2, available at:
15. The Verkhovna Rada of Ukraine (2005), The Law of Ukraine "On roads", available at: (Accessed 17 March 2017).
16. President of Ukraine (2015), Decree of the President of Ukraine "On the Strategy for Sustainable Development" Ukraine - 2020", available at: (Accessed 17 March 2017).
17. Ministry of Infrastructure of Ukraine (2015), Order of the Ministry of Infrastructure of Ukraine "On Approval of the Strategic Plan of road transport and road sector for the period till 2020", available at: (Accessed 17 March 2017).