Financial Regulation Of Public-Private Partnerships: Forms, Models, And Use In Reengineering Conditions

Abstract :

One of the keys and most problematic areas of interaction between public and private partners in the framework of the public-private partnership model is the sphere of financial relations between the parties. Before participating in a public-private partnership project, both private and public partners must give themselves answers to different questions of a financial and economic nature, most of which are not regulated by national legislation. The purpose of the study is to develop provisions for determining the structure of payments during the implementation of public-private partnership projects in the conditions of reengineering processes of public or private partners. They are based on the game theory tools and take into account options of strategies for private and public partners in the field of financial settlements. Game theory, which formed the basis of the proposed provisions, as well as comparison and systematization were used as research methods. As the result there were developed recommendations for the private partners, which in the framework of the public-private partnerships model have the opportunity to choose the most appropriate absolute value and relative share of initial and periodic payments in the framework of partnership projects depending on willingness to take risks regarding result indicators of the object of such partnership.