THE BASE METHODOLOGY TO SAFE IMPLEMENTATION OF PUBLIC PRIVATE PARTNERSHIP ON THE EMERGING MARKET OF THE SOUTH EAST EUROPE
THE BASE METHODOLOGY TO SAFE IMPLEMENTATION OF PUBLIC PRIVATE PARTNERSHIP ON THE EMERGING MARKET OF THE SOUTH EAST EUROPE

Author(s): Izet Bajrambašić
Subject(s): Business Economy / Management, Regional Geography, Economic policy, Methodology and research technology, Economic development, Public Finances
Published by: Akademija Nauka i Umjetnosti Bosne i Hercegovine
Keywords: Project financing; Developer; Circular cooperation;
Summary/Abstract: The market of the South East Europe (SEE) is recognized as emerging market of the transition countries which needs priority investment in different infrastructure projects for sustainable development. Infrastructure of a country is understood as the fundamental service foundation of economy, society and overall development. It is very well known that adequate services are necessary for the development of the economy, including transport, electric power, telecommunications, water supply etc. The transition countries are financially constrained and they have big problems in financing infrastructure projects, especially during the global financial crisis. These projects are generally characterised by high development and maintenance costs, and historically it was seen as the role of the government to fund and manage these assets. A way to fund and manage these assets in this challenging environment is via Public Private Partnership (PPP). Financing and development of infrastructure on the base of PPP means introducing the private sector in financing and management of public services and physical infrastructure. The key question is how to implement PPP on the emerging market of the SEE? The methodology to implement PPP has to be understandable, functional and practicable. It has to cover core tasks and performers which can produce planed results. The base Methodology for safe implementation of PPP needs cohesion of the following important elements: training, projects development, finance structure arrangement and implementation. The units and individual experts of the organisation structure need strong cohesion and it is necessary that everybody understands individual and complete process. Training Unit has task to train experts of the beneficiaries for PPP. It has to have corresponding infrastructure and equipment, good trainer, experience in education and training and possibility to organise training. The Project Developer (project development and finance structure arrangement) has task to develop PPP projects. The Developer will develop projects based on strategic document of the beneficiaries (municipalities, cantons, entities and state). Certified experts from Training Unit will be included. Implementation of the PPP project is guided by the Beneficiary (including certified experts trained according to their needs), with assistance of the Developer. This Methodology for safe implementation of PPP has strong cohesion units and activities “top to down” to follow up feasible and sustainable investment process.

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