Archive of Journal - Financing

Financing – scientific magazine for economy

ISSUE 2021, No. 2, Article 1, Year of publication: 12, June, 2021
Performance assessment of public-private partnership projects


Željana M. Jovičić, PhD*; Milko Štimac, PhD**

*PhD Assistant Professor, University of Banja Luka, Faculty of Economics, Department for Accounting and Business Finance
**Financial Market Consultant – Self employed



Public-private partnership is a form of collaboration between the public and private sectors realized by combining resources, capital and expertise, with the aim of satisfying mutual interests. The basic principle in the decision-making process on establishing a public-private partnership as a way of implementing projects is the possibility of achieving greater value for money. This is achieved through the effects of deadline shortening, increasing the quality or range of the fi nal product, lowering the cost, but also transferring some risk from public to private partners – that is, the fi nancial effect of that reallocation. Using the method of case studies from practice in the Republic of Srpska, the results obtained show signifi cant doubt in the success of the application of this model, especially in sensitive activities (health sector). The main causes of the failure of public-private partnership projects have been identifi ed: failures in the preparatory stages of contract award; oversized procedures and procedures; poor communication and coordination between participants in the process; an insuffi ciently
developed system of control and protection of public interest; fl at estimates of economic parameters (especially discount rates) in the process of preparation and implementation of these projects.

Keywords: public-private partnership, concession, contracts, cost-effectiveness

DOI: 10.7251/FIN2102003J

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