Archive of Journal - Financing
Financing – scientific journal for economy
ISSUE 2018, No. 3, Article 5, Year of publication: 9, September, 2018
Basic characteristics of public-private partnership with a brief analysis of the situation in the Republic of Srpska
*IV year student of the Faculty of Law, Union University Belgrade
Public-private partnership (hereinafter referred to as PPP) represents a specific, dynamic relationship between one or more public authorities with one or more private entities in which a new value is created through joint cooperation. For a private stakeholder, it is an economic gain, and for a public stakeholder it is the social (political) benefit manifested through the establishment of adequate infrastructure and higher quality of services provided for the general good and in the general interest. The use of PPPs is only considered when its advantages and benefits show a better solution than, for example, traditional public procurement models financed through the budget. The PPP jobs often require frugality, cost-effectiveness and greater efficiency and responsibility of the parties involved and carry certain advantages and disadvantages. However, the fact is that PPP projects will be one of the drivers of economic development in the future, especially when taking into account the following: budget constraints of the public sector, growing needs for improving the quality of public sector services, the necessity to change the role of the state in the economy and in the service sector, as well as increasing efficiency in the use and utilization of the infrastructure.
Keywords: public-private partnership, public sector, private sector, advantages, disadvantages, quality of service, infrastructure
DOI: DOI: 10.7251/FIN1803048B