The public-private partnership as a model of financing and implementation of construction projects: essence, advantages and disadvantages

The article examines public-private partnership as a model for financing and implementing construction projects, in particular, its essence, advantages and disadvantages. It is established that public-private partnership is a strategic cooperation between the public and private sectors with the aim of jointly solving socio-economic tasks and achieving certain goals, combining resources, experience and strengths of both sectors to solve complex tasks and provide projects and services to the public. It is proven that today public-private partnership is considered one of the most promising tools for attracting investment in the construction industry of Ukraine. Since the use of this approach allows for the effective implementation of large-scale infrastructure projects, while reducing the burden on the state budget and ensuring high quality of work. At the same time, it was found that the successful implementation of public-private partnership in the construction sector contributes to the modernization of infrastructure, and also stimulates the economic growth of the country, which is of particular importance in the conditions of active hostilities on the territory of our state. It is also established that public-private partnerships open up new opportunities for infrastructure development, increasing the competitiveness of the economy and ensuring sustainable socio-economic growth. At the same time, the success of public-private partnerships depends on careful regulation, design, transparent negotiations, fair risk sharing and the ability to take into account both public and private interests. After all, public-private partnerships offer both advantages and disadvantages in the development of the construction industry. It is emphasized that on the positive side, public-private partnerships can provide increased efficiency, access to private sector innovations, cost sharing, risk sharing, improved service delivery, accelerated infrastructure development, flexibility and expertise. However, there are also potential disadvantages that should be taken into account. These include, in particular, relatively higher costs, lack of state control and transparency, uneven distribution of benefits, as well as political and legal risks. The key here is to strike a balance between private sector efficiency and public sector control, which involves making appropriate legislative changes.