Public-private partnership as a mechanism of activation of modernization processes in the housing and communal economy of Ukraine

Klievtsievych Nataliya
PhD in Economics, Associate Professor, Economics, Law and Business Management Department, Odessa National Economic University, E-mail:wqz820731@gmail.com, ORCID ID: http://orcid.org/0000-0002-2010-4814

Cite this article:

Klievtsievych N. (2019). Public-private partnership as a mechanism of activation of modernization processes in the housing and communal economy of Ukraine. Ed.: D.V. Zavadska (ed.-in-ch.) and others [Publichno-pryvatne partnerstvo yak mekhanizm aktyvizatsii modernizatsiinykh protsesiv u sferi zhytlovo-komunalnoho hospodarstva Ukrainy; za red.: D. V. Zavadskoi (gol. red.)], Scientific Bulletin of the Odessa National Economic University, No. 7-8 (270-271), pp. 61–81.

Abstract

The article is devoted to considering the institute of public-private partnership as one of the possible ways of housing and communal economy out of crisis. Actual problems of housing and communal services have been considered. The analysis of the current state of this sphere, the interconnection of utilities with other spheres of socio-economic infrastructure of the regions, the tendencies of further development have been considered. Options for overcoming the above issues have been suggested. The author determines the dependence of the further development of the industry on attracting investment opportunities of non-governmental institutions. Recommendations on the development of relations within the framework of public-private partnership as a direction of intensification of investment processes in the industry have been proposed. The article analyzes the current state of involvement of private capital in the housing and communal services of Ukraine, gives a brief description of the success factors and failures of the partnership between the government and the private sector. Public-private partnership is considered to be an economic tool for solving existing problems of scarcity of resources during the global economic crisis. In the paper the comparative analysis of the main models of functioning of housing and communal, in particular: English, American, French and German has been carried out. It is proved that the German model is more attractive for Ukraine. It provides for the establishment of a joint-stock company in the field of utilities, but stipulates that the majority of the shares will be owned by the municipality. Due to the insufficient development of the domestic stock market and the investment attractiveness of utilities it has been proposed to simultaneously use the French experience of effective management and concession. The expediency of using concession contracts in the process of harmonizing the interests of the state, private business and consumers of LCD services has been proved. It has been shown that the effectiveness of this particular form of relationship depends significantly on the state bodies that regulate tariffs for services, the level of providing guarantees for the fulfillment of the terms of the contract in case of changes in the political situation in the country, etc.

Keywords

housing and communal services, public-private partnership, economic crisis, public policy.

JEL classification: М210; М380; R420; DOI: 10.32680/2409-9260-2019-7-8-270-271-61-81

UD classification: 332.8:711.8 (477)

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