Methodology for evaluating the effectiveness of financial instruments and levers of public-private partnership: controversy in the scientific environment

Authors

  • Bohdana Shuliuk West Ukrainian National University

DOI:

https://doi.org/10.35774/visnyk2022.04.074

Keywords:

public-private partnership, projects, financial instruments, financial levers, performance evaluation, goals of partnership participants

Abstract

Introduction. The implementation of partnership relations between the state and business is based on the principles of mutual benefit, which must be measurable. Taking into account the above, the evaluation of the effectiveness of the use of its financial instruments and levers for each of the participants is of great importance in the financial mechanism of the public-private partnership. Performance evaluation requires the study of this phenomenon and the analysis of its main components in order to clarify the value and expediency.

Target. The purpose of the article is to highlight the debatable views of scientists regarding the expediency of using a certain methodology for evaluating the effectiveness of financial instruments and levers of public-private partnership.

Research methods. The methodological basis of the research is the methods of bibliographic analysis, comparison, synthesis and generalization, as well as the fundamental theoretical approaches of economists, which make it possible to determine the essence of performance evaluation and the importance of its use in the process of implementing public-private partnership projects.

Results. The article describes various approaches to the implementation of the methodology for evaluating the effectiveness of the use of financial instruments and levers of public-private partnership. They are reflected in normative documents, many domestic and foreign publications, which causes the absence of a single methodology for this assessment. However, taking into account the fact that there are two parties involved in the partnership, most scientists believe that a comprehensive assessment should be based on indicators that should take into account the benefits of all participants in the public-private partnership. This will make it possible to assess the level of realization of the interests of the partnership participants, identify negative trends in the process of achieving them, and identify factors that prevent the desired result from being achieved.

Perspectives. Further scientific research will be aimed at uncovering the pragmatics and issues of evaluating the effectiveness of financial instruments and levers at each stage of implementation of public-private partnership projects.

Author Biography

  • Bohdana Shuliuk, West Ukrainian National University

    PhD (Economics), Associate Professor, doctoral student of the Department of Finance named after S.I. Yuriy

References

Akintoye, A. & Beck, M. (2009). Policy, Finance & Management for Public-Private Partnerships. Published by Blackwell Publishing Ltd, London, U. K., 275 [in English].

Grimsey, D. & Lewis, M. (2007). Public Private Partnerships: The Worldwide Revolution in Infrastructure Provision and Project Finance. Edward Elgar Publishing Ltd, Cheltenham, U.K, 267 [in English].

Brailivskyi, I. A. (2013). Interesy i vyhody pryvatnoho sektora v derzhavno- pryvatnomu partnerstvi [Interests and benefits of the private sector in public-private partnership]. Biznes Inform – Business Inform, 8, 232–236 [in Ukrainian].

Horoshkova, L. A., Volkov, V. P. & Kovalenko, H. V. (2015). Otsinka efektyvnosti proektiv derzhavno-pryvatnoho partnerstva u ZhKH [Evaluation of the effectiveness of public-private partnership projects in housing and communal services]. Teoretychni i praktychni aspekty ekonomiky ta intelektualnoi vlasnosti – Theoretical and practical aspects of economics and intellectual property, 12. 1, 105–111 [in Ukrainian].

Moskalenko, O. M. (2011). Sotsialno-ekonomichni rezultaty tekhnolohichnoho derzhavno-pryvatnoho partnerstva u sviti ta problemy yoho vykorystannia v Ukraini [Socio-economic results of technological public-private partnership in the world and problems of its use in Ukraine]. Ekonomichna teoriia – Economic theory, 4, 15–25 [in Ukrainian].

Naumenkova, S. & Ovsiannykova, Ya. (2013). Osoblyvosti otsiniuvannia efektyvnosti proektiv publichno-pryvatnoho partnerstva: zarubizhnyi dosvid ta ukrainska praktyka [Peculiarities of evaluating the effectiveness of public-private partnership projects: foreign experience and Ukrainian practice]. Visnyk Kyivskoho natsionalnoho universytetu imeni Tarasa Shevchenka. Ekonomika – Bulletin of Taras Shevchenko Kyiv National University. Economy, 134, 47–51 [in Ukrainian].

Kruhlov, V. V. (2018). Modeli vyznachennia efektyvnosti proektiv derzhavno- pryvatnoho partnerstva [Models for determining the effectiveness of public-private partnership projects]. Derzhava ta rehiony. Seriia: Derzhavne upravlinnia – State and regions. Series: Public administration, 1 (61), 107–112 [in Ukrainian].

Andreeva, Ye. S. (2013). Otsenka эffektyvnosty proektov hosudarstvenno-chastnoho partnerstva: metodolohycheskyi podkhod [Evaluation of the effectiveness of public- private partnership projects: a methodological approach]. Vestnyk Kazanskoho tekhnolohycheskoho unyversyteta – Bulletin of Kazan Technological University, 12. 16, 107–112 [in Russian].

Drucker, Peter F. (2001). Management Challenges for the 21st Century. 1st edition. Publisher: HarperBusiness, 224 [in English].

Pro derzhavno-pryvatne partnerstvo (2010). Zakon Ukrainy vid 01.07.2010 r. № 2404-VI [On public-private partnership: Law of Ukraine dated July 1, 2010 № 2404- VI]. Retrieved from: https://zakon.rada.gov.ua/laws/show/2404-17 [in Ukrainian].

Solodovnik, O. O. (2017). Kompleksne otsiniuvannia realizatsii interesiv storin publichno-pryvatnoho partnerstva [Comprehensive evaluation of the implementation of the interests of the parties of public-private partnership]. Problemy ekonomiky – Problems of the economy, 2, 132–139 [in Ukrainian].

Metodyka provedennia analizu efektyvnosti zdiisnennia derzhavno-pryvatnoho partnerstva, zatverdzhena nakazom Ministerstva ekonomichnoho rozvytku i torhivli Ukrainy № 255 vid 27.02.2012 r. (u redaktsii nakazu Ministerstva ekonomichnoho rozvytku i torhivli Ukrainy № 1735 vid 29.11.2017 r.) [The methodology for analyzing the effectiveness of public-private partnerships, approved by the order of the Ministry of Economic Development and Trade of Ukraine № 255 dated 27.02.2012 (as amended by the order of the Ministry of Economic Development and Trade of Ukraine № 1735 dated 29.11.2017)]. Retrieved from: https://zakon.rada.gov.ua/ laws/show/z1536-17#n13 [in Ukrainian].

Kruhlov, V. V. (2018). Modeli vyznachennia efektyvnosti proektiv derzhavno- pryvatnoho partnerstva [Models for determining the effectiveness of public-private partnership projects]. Derzhava ta rehiony – State and regions, 1 (61), 107–112 [in Ukrainian].

Ke, Y., Liu, I. & Wang, S. (2008). Equitable financial evaluation method for public- private partnership projects. Tsinghua Science and Technology, 13 (5), 702–707 [in English].

Prokopovych, S. Yu. (2013). Hosudarstvenno-chastnoe partnerstvo v systeme pryvlechenyia ynvestytsyi kak mekhanyzm realyzatsyy stratehyy sotsyalno- эkonomycheskoho razvytyia: aspekt эffektyvnosty y ryskov [Public-private partnership in the system of attracting investments as a mechanism for implementing the strategy of socio-economic development: aspect of efficiency and risks]. Sovremennыe problemы nauky y obrazovanyia – Modern problems of science and education, 3, 23–30 [in Russian].

Mun, J. Real Options and Monte Carlo Simulation versus Traditional DCF Valuation in Layman’s Terms. Retrieved from: https://www.researchgate.net/ publication/338036116_Real_Options_and_Monte_Carlo_Simulation_Versus_ Traditional_DCF_Valuation_in_Layman’s_Terms [in English].

Akintoye, A. & Beck, M. (2009). Policy, finance and management for public-private partnerships. Published by Blackwell Publishing Ltd, London, 457 [in English].

Published

2023-01-14

How to Cite

Shuliuk, Bohdana. “Methodology for Evaluating the Effectiveness of Financial Instruments and Levers of Public-Private Partnership: Controversy in the Scientific Environment”. Herald of Economics, no. 4, Jan. 2023, pp. 74–83, https://doi.org/10.35774/visnyk2022.04.074.

Similar Articles

11-20 of 293

You may also start an advanced similarity search for this article.