Method of Evaluation of Application of Public-Private Partnerships Cover Image

Način vrednovanja primjene javno-privatnog partnerstva
Method of Evaluation of Application of Public-Private Partnerships

Author(s): Miladin Jovičić, Mirna Vukadin
Subject(s): Business Economy / Management, Economic development, Public Finances
Published by: Oikos institut-Istraživački centar Bijeljina
Keywords: public-private partnerships; value for money; infrastructure;

Summary/Abstract: The evaluation of public- private partnership is a difficult task because of all the advantages and disadvantages of cooperation between the public and private sectors is not easy to measure and evaluate them on the basis of cost-benefit analysis of business and to establish the possi-bility of realizing additional value. All this raises the need for contingent approach to the evalua-tion of the planned project, which is based on the management of uncertainty, avoiding unwanted ris and use of identified opportunities. The pri-mary method of evaluation and justification of the application of this model to solve the many problems of infrastructure and the provision of quality services is so-called SWOT analysis and instrument to quantify “ value for money “. The combination of the positive aspects of the key participants in the SWOT analysis in general to improve the effects of the implementation of the partnership on the basis of which would in-crease the potential for successful cooperation between the public and private sectors. Testing methodology and value for money it is possible to assess whether a particular public investment is justified deliver the traditional model and as-sume all investment risks or part of risks trans-ferred to the private partner and to pay compen-sation for the risks taken.

  • Issue Year: 2/2014
  • Issue No: 2
  • Page Range: 85-94
  • Page Count: 10
  • Language: Bosnian, English