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Problems Of Public-Private Partnership In Ukraine And Ways Of Solving Them


  • Maksim Levochkin

    () (Department of Political Economy, Kyiv National Economic University named after Vadym Hetman, Ukraine)


The article reveals the essence and role of public-private partnership (PPP). It is established that a public and private partnership is a powerful and promising tool of social and economic development at both the regional and local levels, as well as a means of raising funds to projects. The legal regulation of public and private partnership in Ukraine and its shortcomings are determined. It was found that the legislation contains a lot of controversial issues related to: communication problems between the partners; legislative and regulatory issues; financing problems. The number of the PPP projects in Ukraine is presented by sectors and investment in projects of public-private partnership is shown. It was determined that during 1992-2012, 58 PPP projects have been implemented in Ukraine, or 7.03% of the total number of implemented projects. The structure of PPP projects implemented in Ukraine is shown, where the lion’s share is taken by the energy sector (71%), telecommunications (24%), transport (2%), water supply and drainage (3%). The problems that hinder the development of public and private partnership in Ukraine were identified, namely the shortage of highly qualified specialists who are able to develop public-private partnership in the future – both on the part of business, and country; shortage of projects of public-private partnership as well as appropriate banking requirements to them; disinclination of business for stimulating the development of public-private partnership, since the number of private operators is negligible in a very few sectors; inability of public authorities to maintain partner relationships and the implementation of PPP projects; shortcomings of the legislative framework (such as concession) and mismatch of enforcement activity; little activity of the regions in showing initiative to develop and implement PPP projects; inability to attract investment in long-term PPP projects, etc. The ways of improving the implementation of public and private partnership in Ukraine according to the Concept of Development of Public and Private Partnership in Ukraine are identified, including the identification of priority areas for the development of PPPs; improving the investment climate and business environment in the context of the development of PPPs; the development of the authorized state body responsible for the development of PPPs; strengthening the functions of local authorities in the area of PPPs; improving funding mechanisms for PPP projects; activation of the development institutions in the PPP management system; elimination of contradictions and shortcomings of the legal framework of PPP; improving the cooperation of the authorities with civil society institutions for the implementation of PPP projects. Purpose. This article provides for achieving the following objectives: 1) the study of problems of public-private partnership in Ukraine; 2) identification of solutions thereto. The subject of the research is the mechanism of public-private partnership, its problems and solutions thereto. Methodology. In this work the following general scientific and special methods of study were used: comparative and legal, historical, dialectical, analytical and synthetic, formal and logical and statistical methods. Results. The findings allowed drawing specific suggestions for overcoming the problems of public and private partnership in Ukraine. The practical significance of the findings is that the article thoroughly investigated the situation and problems of public and private partnership in Ukraine. Value/originality. This article is a completely original investigation, is practical and can be used for further scientific work.

Suggested Citation

  • Maksim Levochkin, 2016. "Problems Of Public-Private Partnership In Ukraine And Ways Of Solving Them," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 2(2).
  • Handle: RePEc:bal:journl:2256-0742:2016:2:2:13
    DOI: 10.30525/2256-0742/2016-2-2-85-91

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    More about this item


    public-private partnership; state; private sector project;

    JEL classification:

    • P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
    • P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises


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