Public-private partnership in the Republic of Belarus Public-private partnership in infrastructure
A public-private partnership (hereinafter - PPP) is a model of a long-term (10-30 years) cooperation between the state and business, which allows to implement important social projects through innovation, capital and private business resources.
The main directions of infrastructure development using the PPP mechanism:
-Energy infrastructure (external supply systems, heat supply systemgas supply systems);
- Transport infrastructure (road, rail, air and pipeline transport);
- Housing and public services (external and internal water supply and water disposal systems, heat supply systems, power-supply systems, ventilation and air conditioning systems);
- Amenity infrastructure (without taking into account objects of Housing and public services);
- Education (kindergartens, centers of child development, pedagogical complexes, schools, etc.);
- Health service (hospitals, clinics, ambulatory centers, diagnostic centers, sanatoria, ambulance, maternity clinics, etc.);
- Culture and religion (cultural centers, cultural and entertainment complexes, museum complexes, samples of architecture, galleries, art centers, libraries, churches, cathedrals, etc.).
The main prerequisites for the development of the PPP mechanism in Belarus are:
1. The deterioration of infrastructure and the need to implement projects for its renovation;
2. The amount of required investments doesn’t allow to implement projects solely at the expense of budgetary funds;
3. The need to use advanced experience and improve the management efficiency of infrastructure facilities;
4. For most of the infrastructure facilities, the state cannot transfer its responsibility to the private sector for the regulation of social standards, while the private sector is not ready to take political risks without government support.
Simultaneously, with the successful cooperation between two partners (public and private); the benefits are received also by the third party (society), in the form of better services.
Currently, in Belarus there is a process of progressive implementation of the PPP mechanism, which allows mutually beneficial implementation of long-term infrastructure projects by attracting private capital.