The poor quality of Ukraine’s transport infrastructure such as highways together with large needs for investment requires the state to attract private competence and funding. However, Ukraine has so far not succeeded in implementing such Public-Private Partnerships (PPPs).
The author claims that PPP projects must not be simply seen as a private entity pursuing its business under a general state guarantee. Rather, both sides have various risks and benefits which need to be specified and allocated through complex contracts. Key to success, according to the author is to define balances bargaining positions for both sides, so that an overall project failure is never an option to either one.
The author argues that in Ukraine the main problem is not the lack of sufficient legal frameworks, but rather the lack of PPP-specific capacities, competence and reputation. Against this background the author asserts that most relevant would be to initiate a specific PPP unit to bundle state capacities and accumulate the necessary competence and reputation.