PPP as a modern concept for providing public goods and services and its application in Serbia

• Main Author: Drljača-Kanazir Svetlana
• Format: Article
• Language: English
• Published: Association of Serbian Banks 2015-01-01
• Series: Bankarstvo
• Subjects: PPP; public goods; private capital; project finance; risk transfer
• Online Access: http://scindeks-clanci.ceon.rs/data/pdf/1451-4354/2015/1451-43541503112D.pdf

Public-private partnership (hereinafter: PPP) is an unconventional and modern pattern used to finance the construction and exploitation of public goods, which introduces the market based principles of operation in the public sector in the leading word economies as a result of market deregulation and liberalization. The purpose of this paper is to present the basic PPP characteristics, models of funding, and to highlight that this concept of financing the public goods and services is not sufficiently used in Serbia despite the fact that the necessary legal framework and educated staff in the public private and financial sectors, and active promotion of the concept as such are in place. This paper is intended to point that PPP is the only sustainable model of public infrastructure development (roads, tunnels, bridges, power generation plants, etc.) in Serbia which is struggling with the significant budget deficit, huge public debt, high unemployment rate and a stagnating economy.