ARTICLE · 02 FEBRUARY 2011

Mitigation Of Risks Of Private Partners In PPP Projects In Ukraine

Gide Loyrette Nouel

Explore more from Gide Loyrette Nouel

Private public partnership is a well-known method of cooperation between public authorities (public partner) and investors (private partner), widely used in many countries for developing and maintaining infrastructure facilities.

GlobalGovernment, Public Sector

Karl Hepp De Sevelinges

This article was first published in Ukrainian Journal of Business Law in May 2010

1. Introduction

Private public partnership is a well-known method of cooperation between public authorities (public partner) and investors (private partner), widely used in many countries for developing and maintaining infrastructure facilities. The biggest advantage of PPP for the public partner is that it secures and retains the ownership rights over assets while the private partner undertakes to improve the quality of rendered services. On the other hand, private partners are attracted by a stable income flow.

The effective Ukrainian laws do not foresee such type of cooperation as "private public partnership". However, the Ukrainian Parliament is working on adaptation of the Ukrainian legislation to the European standards in this regard¹. There are now several on-going projects in Ukraine that may be classified as PPP projects (e.g. lease of water supply infrastructure in

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