Public-private partnerships as an important element of realization (implementation) of local government development strategies

Abstract

Public-private partnerships need to become a strong mechanism in the following period aiming infrastructure development at the local level. Local governments are faced with the lack of funds in the budget on the one hand, and with the demands of citizens, businesses and other beneficiaries for high quality services on the other hand. Solution to this problem should be sought in PPP at the local level. All factors in this process (local government, private enterprise, financiers) have an expressed motive (economic or political) for successful implementation of the project. Type of public-private partnerships depends on the type of infrastructure object, the total cost of investment and exploitation time. This paper presents three models of partnership depending on the manner the invested funds are returned, i.e. charge for object use, as follows: PPP projects that are charged to the end users, PPP projects that are charged to the local government and PPP projects with partial commercial use.